Can I Get Equity Release on a New Build?
Equity release on a new build property is available from a number of lenders, but the assessment differs from an older property. New builds typically attract a valuation discount, which affects the maximum loan available — and some lenders require the property to be occupied for a period before they will lend.
New build equity release is possible, but lenders apply a new build discount of around 10–15% to the valuation. This reduces the maximum loan. Some lenders also impose a minimum occupation period of 6–12 months.
The new build valuation discount
New build properties typically sell at a premium compared to similar second-hand properties. When you move in, the premium disappears — the property is no longer new, and comparable properties in the same area may be resale rather than new build. Lenders are aware of this dynamic and apply a discount to their valuation to reflect what the property would realistically sell for on the open market if repossession were necessary.
The discount is typically 10–15% below the purchase price. If you bought a new build for £350,000, the equity release valuation might be £297,500–£315,000. The maximum loan is calculated against this lower figure, which can result in significantly less available than you might have expected based on the purchase price.
Minimum occupation period
Some lenders require the property to have been occupied for a minimum period — typically six to twelve months — before they will consider an equity release application. This is partly to allow the new build premium to normalise in the market and partly because brand-new properties without comparable sales evidence in the immediate area can be harder to value with confidence. If you have recently moved into a new build and want to take equity release soon after, not all lenders will be available to you.
Construction type and modern methods of construction
New build properties are increasingly built using modern methods of construction (MMC) — including modular housing, timber frame, and lightweight steel frame. The equity release market's acceptance of MMC has improved in recent years, but it remains more limited than for traditional brick and block construction. Some lenders will lend on timber frame; others will not. Modular and factory-built homes may be accepted by a smaller subset still.
If your new build uses non-traditional construction methods, it is important to check which lenders will accept the property type before proceeding. An adviser with whole-of-market access can identify the relevant lenders without requiring multiple individual applications.
New build flats and leasehold
New build flats carry an additional consideration: lease length. A new lease on a new build flat might start at 125 or 250 years, which is generally sufficient — but the lease terms, ground rent provisions, and any involvement of a management company need to be reviewed. The Leasehold Reform (Ground Rent) Act 2022 now prohibits new residential leases from charging a ground rent above a peppercorn, which helps, but older-style leases on flats sold before 2022 may still carry onerous terms. See also Can I get equity release on a flat?
Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026
Want to understand your options? Speak to a specialist later-life lending adviser. No obligation — just plain-English answers to your questions.
Ask a Question