Equity release property types: what’s eligible and what isn’t

Can you get equity release on any property?

No. Equity release is secured against your home, so lenders focus heavily on whether they can reasonably expect to sell the property later and recover their money. That means eligibility depends on more than just the property’s value.

In practice, lenders will consider:

• Construction type (for example, bricks and mortar versus non-standard materials)
• Property condition and whether it’s in a “sellable” state
• How the property is used (including any commercial or mixed use)
• Ownership and legal set-up (for example, whether you own 100% and the length of any lease)
• Location and risk factors that could affect resale

Because criteria vary between lenders, the same property type can be accepted by one lender and declined by another.

Property types that are commonly eligible

While every application is assessed individually, many lenders are more comfortable with properties that are straightforward to value and sell.

In general, your chances tend to be higher if the property is:

• A house, flat or bungalow
• Built with bricks and mortar
• In good condition
• Your main residence
• Situated on land you also own (where applicable)

Property types that are usually declined

Some property types are typically treated more strictly because they can be harder to repossess, value, or resell.

Park homes

Park homes are often viewed as non-standard because the home may be on a protected site and the land is not necessarily owned by you (or you may not have the relevant leasehold interest). If the lender can’t secure the loan properly, equity release may not be available.

Shared ownership properties

Equity release generally requires 100% ownership of the property. If you only own a share (for example, with a housing association, developer, or local authority), lenders typically won’t consider equity release.

Commercial properties (or mixed commercial use)

If the property is used for commercial purposes, even part-time, many lenders will not proceed. This can include situations such as:

• Running a business from the property
• Letting arrangements that are treated as commercial use
• Certain short-term letting models where the property is not treated as a normal residential home

Holiday homes and second homes

Equity release is usually only available where the home being used as security is your main residence. A holiday home or second home generally won’t qualify.

Studio and basement apartments

Some lenders are cautious about studio and basement flats because of resale demand and valuation uncertainty. As a result, equity release on these property types can be difficult to arrange.

Property types that fall into “grey areas”

Some properties are not automatically ruled out, but they can be more challenging. Lenders may apply tighter conditions, require additional checks, or only consider the property with specialist underwriting.

Non-standard construction

If the property is made from materials other than bricks and mortar, it may be classed as non-standard construction. Examples can include:

• Timber or steel frame properties
• Thatched or certain roofing materials
• Properties with construction methods that lenders view as higher risk

Non-standard construction can be harder for lenders to value and resell, so equity release may be available only through lenders with the right appetite for this risk.

Listed buildings

Listed buildings may be possible, but eligibility can depend on the grade and how the property is maintained and altered. Because listed status can affect future saleability and compliance requirements, fewer lenders may be willing to lend.

Ex-council properties

Ex-council homes are often considered, but lenders may look at factors such as whether any discount period has passed and how the local authority’s remaining ownership in the area is viewed.

Leasehold properties

Leasehold flats and houses are often considered, but lenders typically focus on the remaining length of the lease. If the lease term is short, it can reduce lender confidence in resale.

In some cases, where the freeholder is a council, lenders may also consider whether additional steps (such as buying the freehold) are needed.

Retirement properties

Retirement properties can be more straightforward than some other “specialist” categories, but fewer lenders may offer equity release on them compared with standard residential homes.

Common property features that can affect eligibility

Even when the property type is broadly acceptable, certain features can cause lenders to reassess risk.

Historically, lenders have been more cautious about properties with elements such as:

• Annexes (depending on how they’re structured and used)
• Flat roofs (where maintenance and condition are key)
• Certain types of insulation where there are known concerns

The impact depends on the specific property, evidence of maintenance, and whether any issues can be addressed.

What lenders look at alongside property type

Property type is only one part of the assessment. Lenders also consider factors that can influence whether the property is suitable as security.

Typical considerations include:

• Ownership: equity release is usually only available where you own the property outright (or meet the lender’s ownership requirements)
• Main residence status: the property generally needs to be your home
• Valuation and condition: lenders rely on a surveyor’s valuation and will want the property to be in a sellable condition
• Resale risk: factors that could affect future saleability can lead to stricter underwriting

Why specialist lender criteria matter

Equity release is not “one size fits all”. Even within the same broad property category, lenders may take different views on construction, legal structure, and resale risk.

For that reason, the most important step is ensuring the property details are matched to lenders that are known to consider that category—particularly where the property sits in a grey area.