Home Equity Release Calculator
This calculator helps you estimate how much tax-free cash you could potentially release from your home through a lifetime mortgage, a popular form of equity release. It also provides an estimate of the total amount you might owe in the future.
#equity-release-calculator {
font-family: sans-serif;
border: 1px solid #ddd;
padding: 20px;
border-radius: 8px;
max-width: 600px;
margin: 20px auto;
background-color: #f9f9f9;
}
#equity-release-calculator h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
#equity-release-calculator p {
color: #555;
line-height: 1.6;
margin-bottom: 25px;
text-align: justify;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
}
.form-group {
display: flex;
flex-direction: column;
}
.form-group label {
margin-bottom: 5px;
font-weight: bold;
color: #444;
}
.form-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1em;
box-sizing: border-box; /* Ensures padding doesn't affect width */
}
#equity-release-calculator button {
background-color: #4CAF50;
color: white;
padding: 12px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 1.1em;
transition: background-color 0.3s ease;
width: 100%;
}
#equity-release-calculator button:hover {
background-color: #45a049;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
background-color: #e7f3fe;
border-left: 6px solid #2196F3;
color: #333;
border-radius: 4px;
}
.calculator-result strong {
color: #2196F3;
}
function calculateEquityRelease() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var remainingMortgage = parseFloat(document.getElementById("remainingMortgage").value);
var borrowerAge1 = parseInt(document.getElementById("borrowerAge1").value);
var borrowerAge2 = parseInt(document.getElementById("borrowerAge2").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTermYears = parseInt(document.getElementById("loanTermYears").value);
var resultDiv = document.getElementById("equity-release-result");
resultDiv.innerHTML = ""; // Clear previous results
// Input validation
if (isNaN(homeValue) || homeValue <= 0) {
resultDiv.innerHTML = "Please enter a valid current home value.";
return;
}
if (isNaN(remainingMortgage) || remainingMortgage < 0) {
resultDiv.innerHTML = "Please enter a valid remaining mortgage balance.";
return;
}
if (isNaN(borrowerAge1) || borrowerAge1 95) {
resultDiv.innerHTML = "Please enter a valid age for the oldest borrower (18-95).";
return;
}
if (!isNaN(borrowerAge2) && (borrowerAge2 95)) {
resultDiv.innerHTML = "Please enter a valid age for the younger borrower (18-95).";
return;
}
if (isNaN(interestRate) || interestRate <= 0) {
resultDiv.innerHTML = "Please enter a valid interest rate (greater than 0).";
return;
}
if (isNaN(loanTermYears) || loanTermYears <= 0) {
resultDiv.innerHTML = "Please enter a valid projected loan term in years.";
return;
}
var maxLoanToValue = 0.5; // A common LTV limit for equity release, can vary significantly
var equity = homeValue – remainingMortgage;
if (equity = 55 && borrowerAge1 = 60 && borrowerAge1 = 65 && borrowerAge1 = 70 && borrowerAge1 = 75 && borrowerAge1 = 80) ltvFactor = 0.45;
else {
resultDiv.innerHTML = "Equity release is typically for individuals aged 55 or over.";
return;
}
// Ensure LTV doesn't exceed maximum allowed
var maxAllowedLtv = Math.min(ltvFactor, maxLoanToValue);
var potentialRelease = equity * maxAllowedLtv;
// Calculate future value of the loan using compound interest
var monthlyInterestRate = interestRate / 100 / 12;
var totalNumberOfMonths = loanTermYears * 12;
var futureLoanBalance = potentialRelease * Math.pow(1 + monthlyInterestRate, totalNumberOfMonths);
var totalInterestPaid = futureLoanBalance – potentialRelease;
// Format currency for better readability
var formatCurrency = new Intl.NumberFormat('en-GB', { style: 'currency', currency: 'GBP' }).format;
resultDiv.innerHTML =
"
Estimated Results:
" +
"
Estimated Maximum Tax-Free Cash You Could Release: " + formatCurrency(potentialRelease) + "" +
"
(This is an estimate based on a maximum LTV of " + (maxAllowedLtv * 100).toFixed(1) + "% of your remaining equity, which can vary by provider and your specific circumstances.)" +
"
Estimated Total Amount Owed After " + loanTermYears + " Years: " + formatCurrency(futureLoanBalance) + "" +
"
Estimated Total Compound Interest Accrued: " + formatCurrency(totalInterestPaid) + "" +
"
Please note: These figures are illustrative estimates. Actual amounts can vary significantly based on the specific equity release provider, their lending criteria, the exact interest rate offered, and how long the loan runs for. It is crucial to seek independent financial advice before proceeding with any equity release plan.";
}