Leading estate agent cashes in on equity release boom

Leading estate agent Knight Frank has set up its own equity release advice service for older homeowners.

The company wants to take a slice of the growing business of the over 55s who want to access the cash in their property.

In the last year alone, more than 80,000 over 55s in the UK have taken out £33.6 billion from their properties using equity release products.

Equity release products allow homeowners to realise some of the value of their property before it is sold. The money they receive is only repaid when the property is finally sold, often when the homeowner has passed away.

The products are designed for older homeowners who own a property outright or only have a small outstanding mortgage. In general, homeowners will borrow against their home's value or sell or part-exchange it for a lump sum or a regular monthly income while continuing to live in it.

Knight Frank is one of the biggest worldwide estate agents with 523 offices in 60 countries.

Simon Gammon, managing director at Knight Frank Finance, told The Times that the new equity release division will start with five advisers, but he expects that to grow to more than a dozen quickly.

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