Equity Release and Divorce in Later Life
Divorce in later life creates complex financial challenges around jointly-owned property.
About Equity Release and Divorce in Later Life
Equity release, Retirement Interest Only mortgages, and specialist retirement mortgages can provide solutions - whether one partner wants to remain in the family home, both want to buy separately, or the property needs to be split in a specific way. Our team has experience with later life separation scenarios.
The options we compare
One Partner Remains in the Home
The most common scenario - one partner wants to remain in the jointly-owned property and buy out the other's share. Equity release or a RIO on the remaining partner's sole name can fund the buyout.
Equity Release for Buyout
A lifetime mortgage on the property (sole name of the remaining partner) releases cash to pay the departing partner's equity share. No monthly payments required - ideal if income is limited post-divorce.
RIO for Buyout
A Retirement Interest Only mortgage (sole name) releases cash to fund the buyout with monthly interest payments. Preserves more equity than a lifetime mortgage if income allows.
Both Partners Buy Separately
If the family home is sold, both partners buy separate properties in retirement. Specialist mortgages on pension income for each partner. We advise both parties independently.
Name Change on Existing Equity Release
If an equity release plan was taken in joint names and one partner wants to remain, the plan may need to be restructured. This typically requires a new plan in sole name - the existing joint plan is repaid and replaced.
Legal and Financial Coordination
Divorce financial settlements involving property require solicitor involvement. We work alongside your solicitor and, where appropriate, the financial adviser involved in the divorce settlement to ensure the mortgage solution integrates with the overall settlement.
How We Help
Situation assessment
We establish whether one or both partners want to remain in property, the approximate equity in the property, income of each party, and the settlement requirements.
Option modelling
Equity release vs RIO for the remaining partner modelled with full estate impact and monthly costs.
Application in sole name
Equity release or RIO applied for in the remaining partner's sole name. Joint to sole transfer coordinated with solicitor.
Settlement completion
Equity release or mortgage completes as part of the property settlement. Buyout funds transferred to departing partner.
Speak to our later life lending specialists
Call 0204 6211776 · Whole-of-market advice across all later life products
Frequently asked questions
Can I get equity release in my sole name after divorce?
Yes - equity release in sole name is available from age 55. After divorce, if the property transfers to your sole name as part of the settlement, you can take equity release against your sole ownership. We arrange this frequently for clients going through later life separation.
Can I use equity release to buy out my ex-spouse's share of the family home?
Yes - a lifetime mortgage in your sole name releases cash equal to your ex-spouse's equity share. This funds the buyout, allowing you to remain in the family home without selling. The equity release is repaid from the eventual property sale.
We have a joint equity release plan - what happens in divorce?
A joint equity release plan typically cannot simply be converted to a sole name plan without repaying the existing plan. The existing plan is repaid (using the property sale or a new sole name equity release), and a new plan in the remaining partner's sole name is arranged. We manage this process in coordination with your solicitor.
Can I get a RIO mortgage after divorce at 65?
Yes - a Retirement Interest Only mortgage in sole name after divorce at 65 is available from specialist lenders including LiveMore Capital and Hodge Bank. Monthly interest payments from pension income. Capital repaid from eventual property sale. We assess affordability on your sole pension income post-divorce.
Does my ex-spouse's income matter for my equity release application?
No - equity release is assessed on age and property value, not income. Your ex-spouse's income is irrelevant to your sole name equity release application. For a RIO mortgage (which requires monthly interest payments), only your income is relevant to affordability.