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Can I take out Equity Release in my own name if my partner is too young?

Ideally, a couple living together will hold the house in joint names. The main difficulty for people of unequal ages is that all owners of the property must be named on a mortgage. If one of the applicants would be too young to apply for a lifetime mortgage, they cannot be registered as an owner of the property.

If the property is already held by the older applicant in their sole name, a lifetime mortgage would not require any change to ownership. The younger partner would need to take into account that the property would have to be sold if the owner died or was committed to full time residential care. On death, if they are able to inherit the property, the younger partner might eb able to raise money themselves to pay ff the mortgage. Alternatively, it would be sold, and the balance of funds inherited. If the homeowner is forced into residential care, however, the balance of the sale price potentially reserved by the local authority or care provider.

Where a property is owned jointly but the future Lifetime Mortgage can only be in a single name, the younger person will need to give up any claim on ownership. The whole property will need to be transferred to single ownership and the younger person will be giving up all rights over it. Depending on the amount being borrowed on the Lifetime Mortgage, stamp duty land tax may be payable.

In all of these cases the younger person will need to understand the complexity of the situation and lenders will expect you to pay for independent legal advice.