Equity Release for Bungalows: A Complete Guide (2026)
Bungalows are among the most suitable properties for equity release. Standard construction, high demand, and strong resale values make them attractive to lenders. Here's what you need to know.
Yes — bungalows are ideal for equity release. They are typically standard construction, in high demand, and hold their value well. Most lenders actively welcome bungalow applications. The amount you can release depends on your age and property value, not the property type.
Contents
Why bungalows are ideal for equity release
Bungalows tick almost every box for equity release lenders:
- Standard construction: Most bungalows are brick and tile construction — the most straightforward type for lenders to assess.
- High demand: Bungalows are in short supply and high demand, particularly among older buyers. This means strong resale values and lower risk for the lender.
- Single-storey living: Bungalows are designed for people who plan to age in place. This aligns with the equity release demographic (55+).
- Typically freehold: Most bungalows are freehold, which avoids the complications of leasehold properties.
- Good-sized plots: Bungalows often sit on larger plots than comparably priced houses, adding to their value and appeal.
For these reasons, bungalows are rarely declined for equity release. In fact, some lenders may view bungalows more favourably than other property types because of their strong market position.
How much can you release from a bungalow?
The amount you can release is determined by your age and the property value, not the fact that it is a bungalow. However, bungalows often have higher values than flats or terraced houses, which means the absolute amount available may be significant.
| Age | Typical LTV | On £350,000 bungalow | On £500,000 bungalow |
|---|---|---|---|
| 60 | 25–30% | £87,500–£105,000 | £125,000–£150,000 |
| 65 | 28–33% | £98,000–£115,500 | £140,000–£165,000 |
| 70 | 30–38% | £105,000–£133,000 | £150,000–£190,000 |
| 75 | 35–42% | £122,500–£147,000 | £175,000–£210,000 |
| 80 | 38–48% | £133,000–£168,000 | £190,000–£240,000 |
Illustrative only. Actual amounts depend on property value, health, provider criteria, and product features.
What lenders look for in bungalows
While bungalows are generally straightforward, lenders still assess specific criteria:
- Construction type: Standard brick and tile is ideal. Timber-framed bungalows may be accepted but could require additional surveyor comments.
- Condition: The property must be in reasonable condition. Significant structural defects (subsidence, damp, roof issues) may need to be addressed before the loan completes.
- Location: Most UK residential locations are acceptable. Very remote rural properties or those in areas with limited resale markets may be assessed more cautiously.
- Minimum value: Most lenders require a minimum property value of £70,000–£100,000. Bungalows almost always exceed this.
- Age of property: Very old bungalows (pre-1900) may require a more detailed survey, but are not automatically declined.
An independent valuation is required regardless of property type. For bungalows, this is usually straightforward and the valuation fee is typically £200–£400.
Non-standard bungalow construction
While most bungalows are standard construction, some have features that may complicate the equity release process:
| Feature | Typical Lender Response | What to Do |
|---|---|---|
| Timber frame construction | May be accepted with additional survey | Get a specialist surveyor; some providers specialise in non-standard construction |
| Thatched roof | May be restricted or declined | Seek a specialist provider; expect higher insurance requirements |
| Flat roof (large sections) | May require additional comments | Ensure the roof is in good condition with recent inspection |
| Pre-fabricated / modular | Often declined by mainstream providers | Seek specialist non-standard construction providers |
| Listed building status | Specialist providers only | See our guide on equity release on listed buildings |
Case study: releasing equity from a bungalow
Brian and Sheila, 76 and 74, from Dorset — Their detached bungalow was worth £420,000. They wanted £50,000 to adapt the bathroom and install a stairlift (for the rare occasions they used the upstairs guest room), plus £20,000 to help their grandson with a house deposit.
At their ages, they qualified for a 42% LTV — £176,400. They chose a drawdown plan, taking £70,000 initially and keeping the remainder in reserve. The interest rate was 5.6% fixed for life. Their bungalow was valued straightforwardly by the lender's surveyor with no issues. The entire process took 7 weeks from initial enquiry to completion.
How much could your bungalow release?
Enter your age and property value for an instant estimate. Bungalows typically qualify straightforwardly.
People Also Ask
Yes. Semi-detached bungalows are treated the same as detached bungalows for equity release purposes. The construction type and condition matter more than whether the property is detached or semi-detached.
No. Interest rates are the same regardless of property type. The rate depends on the provider, product features, and market conditions, not whether you live in a bungalow, house, or flat.
Minor repairs are usually acceptable. Significant structural issues (subsidence, major damp, roof failure) may need to be addressed before the loan completes. Some lenders allow you to use part of the released funds for essential repairs.
Park homes are generally not accepted for equity release because they are not freehold properties and may not meet minimum value requirements. See our guide on equity release for park homes.
Not necessarily in terms of LTV or interest rates. However, bungalows are often easier to value, have strong resale demand, and are less likely to have construction issues that complicate the process.
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Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026