What does equity release cost the estate?

A lump sum today and the debt that rolls up against the home.

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What you enter: home value · amount released · interest rate % (rolled up) · years · house price growth %.

Worked example

What does equity release cost the estate — an example

Inputs

Home value: £500,000
Amount released: £100,000
Interest rate % (rolled up): 6%
Years: 15
House price growth %: 3%

Result

After 5 years: debt: £133,823 · equity left £445,814
After 10 years: debt: £179,085 · equity left £492,873
After 15 years: debt: £239,656 · equity left £539,328
Debt at the end, for £100,000 today: £239,656

Interest is added to the loan and charged on itself; most lifetime mortgages carry a no-negative-equity guarantee.

How it is worked out. The loan grows at the rate each year; the home grows at the price-growth rate; equity is the difference.

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Not advice. Money Horizon is a planning indicator built on simplified rules. It does not know your full circumstances, cannot replace a regulated adviser, and its figures should not be relied on for any decision. It is not financial advice. Nothing you enter leaves your browser. Calculators use the 2026-27 rules; figures are estimates.