Equity release is an alternative to downsizing
Nearly two fifths of over 55s are planning on selling their current home and downsizing to a smaller property, research by Prudential has revealed.
As many of 2.3million older homeowners are considering downsizing to ensure a more comfortable retirement with 20% expected to make the move within the next five years.
On average homeowners are hoping to release £85,300 from downsizing while 9% are expecting to raise in excess of £200,000.
The primary reason for downsizing is the convenience and ease of running a smaller house (60%) while one in five are trying to save money on the cost of running a house. However a third are selling solely to raise money. Richard Espley, Head of Equity Release, comments:
“Downsizing is quite common amongst older homeowners who no longer feel they need such a sizeable property and, given the increased costs of running it, this makes perfect sense.
“However there are many homeowners who feel they have little other option but to sell the family home to boost their retirement income. That is not the case. Equity release allows a homeowner to unlock some of the money tied up in their property whilst retaining the right to live there.”
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Content correct at time of publication