£136.5bn of property equity to be released in next five years
Approximately 12 per cent of retirees are planning to downsize their property in the next five years, according to new research by MGM Advantage.
Downsizing is quite commonplace for older homeowners who, having seen children fly the nest, no longer need the space and running costs of a larger property.
However in many cases retirees are looking to downsize purely for financial reasons, with the money earned used to help fund their retirement. If this is the case then equity release could offer a more preferable option than the emotional difficulty associated with moving house. Richard Espley, Head of Equity Release, explains:
“For many homeowners downsizing is undoubtedly the right option. However equally there are a number of people who simply don’t want to leave their property, all the memories and even their neighbours and neighbourhood but, in these financially tough times, feel they have little other option but to sell up.
“In this instance equity release could offer a solution as it allows homeowners to unlock the value of their property whilst retaining the right to live there.
“Equity release means homeowners can benefit from their biggest financial asset without having to go through the physical and emotional upheaval of moving house.”
Content correct at time of publication