Over-65s using equity release to access £1tn in property wealth

Estimates suggests around £31 trillion in property wealth is held by the over-65s in the UK. And new research suggests one in four pensioners are using that wealth to help their family through equity release.

Over 55s finance specialist Key Retirement said that around 30 retired homeowners give away all or some of the cash tied up in their homes through gifting. In its Equity Release Market Monitor, Key Retirement said the number of over 65s using their home to finance help for their family rose from 22 percent to 26 percent in the first quarter of 2018.

Providing the finance to help their offspring buy a home was one of the most important reasons for equity release among pensioners.

Homeowners using equity release have gained an average £74,047 tax free with Londoners pocketing an extraordinary £3128,400 through that process.

According to the monitor, the average homeowner over the age of 65 has gained £159,000 in property wealth in the 23 years they have owned their home. In London, pensioners have been the biggest winners from spiralling property prices, collecting an average £14,257 every year they have had their home.

Equity release is used for a myriad of reasons, including funding home and garden improvement, financing a holiday, paying off debt and, of course, providing offspring with the cash for a house deposit.

Dean Mirfin, chief product officer at Key Retirement, said: "Gifting is a major motivation for equity release, and our data shows it is more a cast of parents and grandparents wanting to gift rather than children asking for help.

"They're motivated by the desire to help when the money is really needed and being around to see the difference that it makes. In addition, equity release enables them to have some control over how the money is ultimately used."

Whatever your reason for equity release, Homeward Legal can help start the legal proceedings you need to access the wealth in your property. We work with solicitors across England and Wales who are vastly experienced in dealing with this process, ensuring you will be in control of your financial destiny.

Call our team no won for an instant quote or get one online.