It`s emerged that people aged 60 and above own property with a value equivalent to a quarter of the country`s entire housing stock. This may mean that the elder population may consider using their biggest asset to raise funds, to spend in their retirement, through equity release.
LV indicates that retirees own almost £1 trillion of property, out of the UK`s total £4 trillion value, with the average per house worth for 60 and overs is around £6,000 higher than the general average. What`s more, three in four are mortgage free, while 1 in 12 own a second home.
When it comes to equity release, LV finds that a fifth (19 per cent) plan to use the wealth built up in their home to pay for their retirement due to not having enough in their pension pot, with 114,000 people over the age of 55 having done so in the past year alone.
There`s been a 35 per cent increase in demand for equity release products this year, with LV=`s Richard Rowney explaining that money tied up in people`s homes may present a solution to problems arising from smaller pension pots and longer periods spent in retirement.
If you want to look into the possibility of releasing equity from your property , you may want to get in touch with an intermediary like First Choice Finance, who will give you advice on the equity release routes they offer and talk through the facts and figures with you before you go ahead.
If you wish to see what First Choice can arrange for your equity release solutions you can contact us via firstchoicefinance.co.uk or telephone us from a mobile on 0333 003 1505 or from a landline dial 0800 298 3000.
LV survey also suggests that out of those who have released equity, 38 per cent have done so to improve their retirement income in order to stay living in the manner to which they`ve become accustomed, and allow them to spend money on luxury purchases like once in a lifetime holidays.
Four per cent of people taking the equity release option will do so in order to pay for their own care, which tunes into a new report that calls for a rethink about how this is provided. The Care Choice Gap from Consultus Care and Nursing comes with the backing of Esther Rantzen, champion of the elderly, and Ros Altman, the government`s financial investment tsar.
Peter Seldon from Consultus notes that `97 per cent of people feel most comfortable in their own home when they are over 75, but sadly for many, this isn`t a reality`. However, if you plan ahead to utilise equity release, you may be able to stay in your own property, rather than selling it to pay for the care of you or your partner.
Equity release funds can be spent on others too, of course, and Shelter has found that one in five parents give their offspring a financial leg up to buy their first home, with the average amount coming in at £23,000 each. That`s up from last year`s figures, where the total of £2 billion came in at an average of £17,000.
However, it`s far from every parent who feels able to help their children in this way, as an example 60 per cent of parents in Yorkshire believing that they`d be unable to help provide a deposit for their first time buyer sons and daughters.
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