Retired Homeowners’ Wealth Tops £1tn
Equity Release on the Rise
Since 2010, retired owners have seen their property wealth increase by 41%1. This equates to £68,500 per homeowner over 65.
Equity release on the rise
For many people, property represents their largest asset and has a major part to play in their retirement funding. Older people sometimes find themselves living on low incomes whilst living in valuable properties. Downsizing to a smaller property might be the answer for some, but moving home can be a stressful and costly process, and there’s a widespread shortage of suitable retirement properties available. That’s why equity release, accessing the wealth tied up in a property, has proved popular over the last few years.
You can use the cash released for any purpose you choose. Bolstering pension income, home improvements, making cash gifts to the family, repaying debts, and extended holidays are all uses to which the cash is commonly put.
Advice is essential
If you are considering equity release you will need to take financial advice on which equity release scheme is right for your needs. Lenders may also require you to seek specialist legal advice before you proceed. Whilst equity release can represent a tax-free way of accessing some of the equity tied up in your property, it also has implications for your estate and your heirs, so it makes sense to discuss matters with your family.
If you’re thinking of releasing cash from your home, do get in touch. Our specialist mortgage and equity release advisers can talk you through the process, help you complete an application and secure the best rates for you.
1 Key Retirement, Oct 2017