The maximum amount of tax-free cash you can borrow on a lifetime mortgage is calculated using the age of the
youngest applicant, the value of the property, and the postcode.
Lenders are becoming savvier in how they calculate loans, and some now factor in whether the property is a
flat or maisonette and reduce the loan-to-value accordingly. For instance, Legal & General will only take
into account 85% of the property value for flats & maisonettes when applying their LTV calculations.
Aviva will also consider the tenure of the property and whether it’s freehold or leasehold. Should the
property be leasehold, Aviva will calculate the maximum loan amount on how long the duration of the
remaining lease is. If the lease term is shorter, they won’t lend as much.
The older you are, the more you can borrow. For example, if your home is valued at £300,000, at age 55, you
can borrow a maximum of 33.2%* of the property's value (the LTV) - that's a maximum loan amount of £99,600.
At 75 it's 54.5%* - or £163,500.
Equity release calculators will only give you a rough idea of the maximum you can borrow with a lifetime mortgage, home
reversion plan or retirement interest only (RIO)
mortgage. For a specific maximum loan calculation, try our intelligent smartER research tool, which can calculate the maximum loan
amount for every equity release scheme based on your personal criteria.
*Based on M2L Apex plan maximum LTV – 1.9.2022