Many UK couples reach retirement with most of their wealth tied up in the family home.

Releasing some of that capital through a lifetime mortgage or home-reversion plan can top up pensions, clear lingering debts, or fund long-deferred bucket-list adventures.

But what happens when the property is owned jointly—whether as spouses, civil partners, siblings, or friends?

Does the process differ, and what protections exist for the surviving co-owner?

In this guide we walk through the nuts and bolts of equity release on jointly owned property.

We’ll cover eligibility rules, legal ownership structures, inheritance considerations, and the importance of survivor safeguards.

Along the way you’ll find handy TimeBank resources—such as the live tracker of equity-release interest rates and a balanced look at pros & cons—so you can make an informed, confident decision.

Joint Tenants vs Tenants in Common

The starting point is your form of ownership.

Most couples hold property as “joint tenants,” meaning you both own the whole home equally and the survivor automatically inherits the other’s share.

Equity-release lenders are very comfortable with this setup because they know the property won’t fall into partial ownership after the first death.

“Tenants in common,” by contrast, each own a defined share—often 50/50 but it can be any split.

The share passes under your will rather than automatically to the co-owner.

Lifetime-mortgage lenders will still consider applications, but they’ll insist all owners (and sometimes adult beneficiaries) consent, to avoid future legal disputes.

For a refresher on these legal quirks, see TimeBank’s primer on key equity-release facts.

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Minimum Age & Eligibility Rules

With joint applications, every owner named on the title must meet the lender’s minimum age—usually 55 for lifetime-mortgage providers, though some enhanced plans start at 50.

If one partner is younger, you can’t simply leave them off the paperwork; the mortgage is secured on the whole property.

For couples where one partner is well under 55, alternatives such as a Retirement Interest-Only mortgage or downsizing may plug the income gap until both reach qualifying age.

Crunch the numbers with the equity-release calculator to weigh up scenarios.

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Survivor Protection & “Last Survivor” Clause

All ERC-approved lifetime mortgages include a “last survivor” guarantee: the loan only needs repaying when the final owner dies or moves into long-term care.

If one partner passes away, the surviving joint borrower can stay in the property for life without triggering repayment.

However, this safety net only works if both names are on the loan.

If a widowed homeowner later remarries and doesn’t add the new spouse to the title and mortgage, the newcomer could be forced to move on death of the original borrower.

Review ownership after major life events and see the guide to switching or amending equity-release plans.

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Impact on Inheritance Planning

Because interest compounds until the last borrower dies, joint applications generally run longer than single-life plans.

That means the loan balance (and therefore inheritance impact) may be higher.

Using a drawdown facility instead of taking a full lump-sum up front can curb interest growth, leaving more for beneficiaries.

Couples sometimes ring-fence a percentage of property value via an “inheritance protection guarantee.”

Not all lenders offer it, so compare features—not just rates—using TimeBank’s list of the best equity-release companies.

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Handling an Existing Mortgage or Debt Split Unequally

If you already have a joint repayment mortgage, many lifetime-mortgage lenders allow part of the new advance to clear the old loan—known as “equity release to pay off mortgage.”

See how it works in our explainer here.

Where ownership shares or debts are unequal (common in later-life second marriages), solicitors may draft a deed of trust allocating loan proceeds proportionally.

Expect extra legal fees—add them to your budget using the equity-release cost checklist.

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What If One Partner Has Poor Credit?

Most lifetime-mortgage assessments focus on property value and age rather than credit score, so a patchy credit file rarely derails an application. Still, serious issues—recent repossession or bankruptcy—can spook underwriters.

Read TimeBank’s guide to equity release with bad credit for workarounds, such as settling outstanding County Court Judgments before application.

Remember, conventional secured loans or RIO mortgages do include affordability checks, so the better-scored partner’s income may need to cover repayments alone if the other fails credit vetting.

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Divorce, Separation & Unwinding a Joint Plan

Life happens. If co-owners split, you generally have three options: repay the plan (potential early-repayment charge), transfer the loan into one name (lender must approve), or sell the home and split remaining equity.

Early-repayment terms vary widely; flexible lenders like Legal & General sometimes waive penalties after five years.

Before committing, discuss “what-ifs” with your adviser.

TimeBank’s article on common equity-release pitfalls covers separation scenarios in depth, helping couples draft fair contingency plans upfront.

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Choosing the Right Adviser & Provider

Joint applications add layers of complexity—inheritance tax, survivorship rights, and potentially blended-family politics.

Work with an FCA-authorised, whole-of-market adviser and verify credentials on the Financial Services Register.

Avoid firms flagged on TimeBank’s companies to avoid list.

During fact-finding, the adviser should explore alternatives such as downsizing, pension withdrawals, or family-assisted loans—ideas compiled in Alternatives to Equity Release.

Only when equity release clearly aligns with both partners’ goals should you proceed to full application.

Common Questions

Conclusion

Equity release on jointly owned property is perfectly possible and, with the “last survivor” guarantee, often safer for couples than borrowing in a single name.

Just be mindful of minimum ages, inheritance implications, and the unique legal wrinkles of tenants-in-common arrangements.

Protect both partners—and your heirs—by choosing an ERC-member lender, building in flexible features, and reviewing the plan after life events.

With careful planning and expert guidance, you and your co-owner can unlock tax-free cash today while safeguarding comfort and security for the rest of your lives.