Why London Homeowners Release More
Equity release allows homeowners aged 55 and over to access a tax-free lump sum or drawdown facility from the value built up in their home, without having to move. The amount you can release is calculated as a percentage of your property's value - and London's property values make that percentage significantly more in cash terms than the UK average.
A 65-year-old in London with a £750,000 property might release £210,000–£300,000 tax-free. A homeowner with a comparable property elsewhere in the UK would access a smaller sum simply because the underlying property value is lower.
| Age | Typical Max Release % | Indicative Cash Released | Indicative AER Rate |
|---|---|---|---|
| 55 | 25–30% | £175,000–£210,000 | 6.5–7.5% |
| 60 | 30–38% | £210,000–£266,000 | 6.2–7.2% |
| 65 | 35–43% | £245,000–£301,000 | 6.0–7.0% |
| 70 | 40–50% | £280,000–£350,000 | 5.9–6.8% |
| 75+ | 45–55% | £315,000–£385,000 | 5.8–6.5% |
Equity Release Plans We Recommend
Lifetime mortgages are the most popular form of equity release. You borrow a percentage of your home's value, with interest rolling up over time. The loan plus rolled-up interest is repaid when you die or move into long-term care. A no-negative-equity guarantee means you will never owe more than your home is worth.
Retirement interest-only (RIO) mortgages allow you to pay the interest monthly, keeping your balance flat. This preserves more estate value and suits those with reliable pension income. Available from age 55.
Home reversion plans involve selling a share of your home to the provider in exchange for a lump sum and the right to remain in your home rent-free. Less common than lifetime mortgages but can suit specific circumstances.
All plans we recommend are from Equity Release Council approved lenders, ensuring you benefit from the ERC's consumer protections including the no-negative-equity guarantee and the right to remain in your home for life.