Equity Release & Joint Ownership

If you have a jointly owned property, you might be curious to know if you can still access an equity release mortgage arrangement. And if so, whether joint ownership affects the process, or involves any extra considerations.

This guide covers everything you need to know about joint mortgages and equity release. You’ll learn about the various steps involved, the potential restrictions you might face with multiple tenants, and where to find expert support.

Keep reading for all the essential details or click on a link below to jump straight to a specific section…

Can you get equity release with joint ownership?

This is possible, but the way it works will depend on the structure of your mortgage. Whether your property ownership is as joint tenants or tenants in common will impact the equity release procedure.

The situation is simpler with just two owners, because the majority of products are only for single or joint applicants. Any additional co-owners would usually have to be removed from the deeds before applying.

Do both owners have to be over 55 for equity release?

Yes, both applicants would have to be over the age of 55 to qualify for most schemes. The only way to get around this would be to use a transfer of equity to the part-owner who is over 55. This means one owner gifts their share of the property to the other.

So, you’d no longer be using joint names for the equity release application, because the house is legally owned outright by the elder applicant.

How much equity can joint applicants release?

Plenty of lenders will let you release up to 55% of the home’s value. But, this can swing higher or lower depending on who you speak to. Because equity release products can vary in both the terms and the lending limits, it’s vital you speak with the right lenders.

In most cases, the exact amount would be the same as you’d be able to get as a single applicant. How much equity you can release will depend on your specific circumstances and most importantly, the lender that you deal with. The age and health of both applicants along with property details (home type, value, whether you own it outright) all make a difference.

How an equity release specialist can help

Navigating the many different products available can be quite confusing without expert advice. The situation requires even more guidance when there are joint owners looking to access equity. This is because you’ll have more potential options, making it even more important that you pick the right course of action.

Using an equity release specialist means you’re able to access the knowledge and relationships of an industry expert. Having a skilled broker in your corner means that they can guide you throughout the whole process. And, make sure you end up with the best joint equity release plan possible.

If you’d like to speak with an expert broker who can look at your whole finances as joint applicants, just make an enquiry. We’ll set up a free chat between you and a specialist advisor who can help find you the right solution for your needs.

Providers who offer equity release on a joint basis

Having more than one owner does alter the process slightly. Only certain lenders will be able to offer the right equity release product for joint ownership.

Interest rates are specific to the personal circumstances of the owners, but here are a few examples of available schemes:

• Aviva – Your home must be worth at least £75,000 and you have to borrow £15,000 or more. You must be mortgage-free or have a small enough outstanding mortgage that can be covered by the equity release. This joint lifetime mortgage also requires that you first speak to an expert advisor.

• Legal & General – There is a no-negative-equity guarantee and even an inheritance protection option. The house must be worth at least £70,000-£100,000 (depending on property type). And, proceeds from the equity release must be used to buy the rest of the property if you still owe on the existing mortgage.

• Nationwide – This lifetime mortgage comes with a maximum loan of up to £1 million. However, this reduces to £515,000 if you’re based in Scotland or Wales. There are no valuation or product fees but you can only release funds as a lump sum instead of drawdown payments.

Most equity release providers offering plans for joint owners or tenants don’t tend to advertise their deals. Many also require that you first sit down with a specialist advisor. So, if you want to speak to an expert and see the full range of options, using a skilled broker is the best course of action.

Alternatives to consider

Equity release isn’t the only option to explore with joint ownership.

Here are a few other alternatives that are worth discussing with your broker:

• Remortgaging: if you have an existing joint mortgage, it’s worth considering remortgaging to tap into equity locked up in the property. This can be a particularly good option if one or both of you are under the age of 55. Because, it’s typically easier to arrange a remortgage at a younger age.

• RIO mortgage: another option to look into is a retirement interest-only (RIO) mortgage. Opting for this would mean you’d need to pass an affordability assessment as you’d be paying the interest on the loan on a monthly basis. But, it means you can release equity without reducing the size of your inheritance. And, payments are often lower than a repayment mortgage.

• Retirement capital & interest mortgage: this is like a standard part and part mortgage, paying off some interest and some of the principal. The main difference is that you can borrow at a higher age, making it easier to qualify for some loans.

• Other financing: outside of mortgage options, you can also look into other ways to access money. This could involve downsizing to a smaller home, using current savings, or looking into personal loans and credit cards.

Get matched with an equity release specialist

The best way to proceed with equity release on a joint ownership basis will depend on your exact situation and property. Using a specialist broker is the ultimate way to make sure you end up taking the right next steps with your mortgage.

We offer a free broker-matching service. This means we’ll quickly assess the circumstances of all applicants. And then, pair you up with an expert advisor who can find you an arrangement you’re happy with.

Just call 0808 189 0463 or make an enquiry. We’ll set up a free, no obligation chat between you and an equity release specialist today.