Can I Release Equity From My House in Surrey Before I’m 55?
By Gareth Davies | Created on 21st July 2025
Is there any prospect of releasing the money tied up in your home before the age of 55? For many homeowners, their property is their most valuable asset. The average selling price of properties in Surrey increased by around a third over the past 10 years, according to Land Registry data, so your property’s value may well have increased.
Equity release could allow you to live on in the property while accessing its value at the same time – but what’s the catch? There are pros and cons, and age matters. We explain what it means to release equity from your Thames Ditton, Claygate or Hinchley Wood property, and the options for equity release if you’re under 55.
What is equity release?
Equity release is what happens when you cash in a portion of your property’s value, while continuing to live in it. They are more commonly used as a source of finance in retirement. You must also be mortgage-free, and understand that it can reduce the inheritance you leave.
Can I release equity from my house when under 55?
Most equity release schemes are only available to over-55s, or over 60s, and the minimum age limit applies to the youngest of the couple. A transfer of equity could make the older partner the sole owner, however, this can have serious legal and financial implications.
What are the different types of equity release
There are two main types of equity release scheme, lifetime mortgages and home reversion mortgages.
1. Lifetime mortgages
A lifetime mortgage is a form of equity release where you are borrowing against a proportion of your home’s value. This is repaid when you die, move into long-term care or sell the property. You will pay interest, often capped by a negative equity guarantee – as a result, lending to younger borrowers would make this model unprofitable for lenders.
2. Home reversion mortgages
Under home reversion plans, you are selling your property or a percentage of it, while continuing to live in your home. Again, home reversion mortgage lenders expect to see their profits after a shorter period.
How can I release equity when under 55?
Other methods can be used to leverage your house’s value if you are too young to consider equity release. For example:
Secured loans
You may be able to use your home or another higher value asset as security. Borrowing against a valuable asset can come with its own risks.
Remortgage
Remortgaging to release equity by increasing your loan-to-value ratio (LTV) can be effective if your property has increased in value since you bought it. You may incur early repayment charges, and will have to pass affordability checks and a credit check.
Downsize
A traditional option, yet moving to a lower-priced property may reduce your financial pressure or allow you to free up funds. While this means leaving your current home and the costs of moving home, it can represent a clean break.
Rent Out
If you have a spacious home, you could rent out a room. Up to £7,500 of income earned from renting out rooms in your house is tax free under the Rent a Room scheme.
Pros and cons of equity release schemes
Advantages of equity release:
Remain in your current property while unlocking its value
You could ease financial pressures
Receive monthly payments for income in retirement
Help family members now instead of looking towards an eventual inheritance
It can be tax efficient as equity release funds aren’t taxable income
Disadvantages of equity release:
Equity release can affect means-tested benefits (Age UK outlines which benefits are means-tested)
The inheritance you leave will be reduced
Compound interest increases the amount owed
If you gift money to a family member, they may have to pay inheritance tax on it later
Your home may be repossessed if you don’t keep up with payments
Equity Release – Common Questions
Can you get equity release on a leasehold property?
Yes, leasehold property owners can get equity release plans, but providers may want to see a minimum term, often 80 years.
Can I sell my house if I have equity release?
You can sell your house with either a lifetime mortgage or home reversion plan. However, you will need to port your loan to the new property or repay it and take out a new deal, which can incur an early repayment charge.
Can you pay back equity release early?
With a lifetime mortgage, you can repay some or all of it early, but the early repayment charges can be high.
Do you pay tax on equity release?
No, equity release payments are tax free because they are a loan rather than earnings or pension payments.
Understand whether you’re eligible for equity release
Not every choice is suitable for every homeowner – and being under 55 can affect your options. If you are considering downsizing or selling your property in Claygate, Cobham or Esher, contact Davies Property Partners.
Gareth is a dedicated professional at Davies Property Partners, committed to delivering exceptional service with a transparent and client-focused approach. Having spent his entire career with the family business, he has played a key role in building its strong reputation in the local property market. With deep roots in Cobham and an intimate understanding of the area, Gareth excels at providing tailored solutions that go beyond expectations.
