Equity release estimator

Equity on paper versus equity you can use

Most business owners know roughly what their property is worth and what they owe. The difference looks like spendable equity, but lenders never lend to the full value. They apply a cap, a maximum loan-to-value ratio, that leaves a buffer for selling costs and market movement. Usable equity is what remains under that cap after existing debts. This estimator applies a cautious cap to each property based on its type and adds the results together.

Why property type matters

Security is judged on how quickly and reliably it could be sold. A house or unit in an established suburb has deep buyer demand. A regional property or a commercial building has fewer buyers, and vacant land produces no income while it waits. That is why the caps in the dropdown step down. They are planning figures only, and the real cap on your deal depends on the location, condition and the strength of your exit.

Combining properties

One property rarely tells the whole story. A home with a large bank loan might have little room on its own, while an investment unit with a small mortgage has plenty. Offering both as security can make a deal possible that neither would support alone. Properties held by directors, trusts or related companies can be used if the owners agree. Our page on equity release loans explains the structures, and the second mortgage headroom calculator shows what is possible when you want to leave the bank loan untouched.

From estimate to funds

No valuation is needed before approval, so you can test an equity release quickly. Start a 60-second enquiry with each property's rough value and mortgage balance, and tell us what the money is for and how it will be repaid. There is no credit check when you first enquire, your details are not sent to a list of lenders, and accurate figures mean the first call gives you a real answer.