Equity Release and Top-Up Mortgages

Borrowing against the value you have built up — renovations, education, a site, an investment — and the legal work that gets the funds released.

Equity release in this guide means borrowing against your home through a new or increased mortgage while you continue to own and live in it — a top-up with your existing lender, or a remortgage to a new lender for more than the balance you owe. It is the standard route for funding major renovations, gifts to children buying their own homes, education costs, or the purchase of another asset.

It is distinct from lifetime loans and home reversion products aimed at older borrowers, which are specialised regulated products with their own features and are not covered here. If that is what you are considering, take specific financial advice on the product before taking legal advice on the security.

Top-up vs remortgage for more

A top-up (or further advance) is an additional loan from your current lender secured on the existing mortgage or a supplemental charge. It involves fresh affordability assessment and usually a valuation, but the conveyancing is lighter because the lender already holds your deeds and its charge is already registered — although the lender may still require a solicitor for certain top-ups, particularly larger ones or where declarations are needed.

A remortgage to a new lender for a higher amount is a full switch plus extra borrowing: the entire remortgage process applies, and the new lender's loan offer will state the purpose of the additional funds. If the new lender's rate beats your current one, this route can fund your project and cut your rate in one transaction.

What lenders ask about the purpose of funds

Lenders lend against purpose. For home improvements, expect the offer to require costings, sometimes staged drawdown against certified progress for bigger works, and confirmation that planning permission or an exemption applies. For a gift to a family member, the recipient's lender will separately require a gift letter confirming the money is not repayable. For investment purposes, the lender will want the loan to fit its credit policy on the asset being bought.

Your solicitor's job includes making sure the conditions in the loan offer can actually be satisfied before you are committed — for example, that the extension you built in 2011 has the compliance paperwork the funding condition assumes.

Anti-money-laundering and source of funds

Equity release transactions attract particular attention under anti-money-laundering law because they convert property value into cash. Expect both the lender and your solicitor to verify identity carefully and to document the destination and purpose of the released funds. This is routine and protective; build a few days into the timeline for it.

Family dimensions

Where the home is jointly owned, both owners must join in the mortgage. Where it is owned by one spouse or civil partner alone, the other's prior written consent to the mortgage is required under the Family Home Protection Act 1976 or the Civil Partnership Act 2010, and lenders will insist the consenting spouse gets independent legal advice in some circumstances. Where equity is being released to help a child buy a home, keep the gift paper trail clean — the child's solicitor and lender will need it.

We do not advise on the tax aspects of gifts (capital acquisitions tax thresholds, small gift exemptions and similar are matters for your accountant or Revenue), but we will flag when a tax question arises so you can take that advice before funds move.

Risks worth stating plainly

Releasing equity re-borrows money you had already paid off, secured on your home, usually over a long term. The monthly cost may look small; the total interest over the term is the real price, and your home is the security if things go wrong. It is generally poor value to fund short-lived spending with long-term secured borrowing. These are financial decisions — take financial advice on whether to borrow, and legal advice on how the security works. Our savings calculator will at least show you the interest arithmetic honestly.

Frequently asked questions

How much equity can I release?

Lenders limit the total loan to a percentage of the property's value (loan to value) and to what you can afford under Central Bank rules. The valuation the lender commissions, not your own estimate, sets the value used.

Do I need a solicitor for a top-up with my own bank?

Not always for smaller further advances, but many top-ups do require legal work — particularly where declarations, consents or a supplemental charge are needed. The lender's offer letter will state what is required.

Can I release equity to buy another property?

Yes, subject to the lender's credit policy — releasing equity in your home to fund the deposit on an investment property is a common structure. The lender on each property will want to understand the whole arrangement.

Is the released money taxable?

Borrowing is not income, but what you do with it can have tax consequences — gifts, investment and rental structures all raise tax questions. We do not give tax advice; please consult your accountant or Revenue.

What if my spouse is not on the title?

If the property is a family home, your spouse or civil partner must give prior written consent to the new mortgage even if they are not an owner, and the lender may require them to have independent legal advice.

Talk to a remortgage solicitor

Mary Molloy Solicitors acts for homeowners and property owners across Ireland on remortgages, switches, top-ups and transfers of equity. All enquiries are handled through our Dublin office.

This page contains general information about Irish law and practice. It is not legal advice, it may not reflect your circumstances, and reading it does not create a solicitor–client relationship with Mary Molloy Solicitors. We do not advise on taxation; please speak to your accountant or Revenue. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.