Equity release is an option for ‘last time buyers’
Over a quarter of older homeowners expect to have to sell their property to help fund retirement, recent research has revealed.
The study by Prudential suggests that up to two million pensioners have little other option but to sell up and leave their family home as a way to supplement a poor pension provision.
The market, dubbed as last-time-buyers, could release on average as much as £62,000 by downsizing.
While downsizing may be of real benefit to some homeowners looking to reduce the everyday costs and upkeep associated a larger property, for others the emotional wrench of leaving their family home is a last resort.
However downsizing is by no means their only option as Richard Espley, Head of Equity Release, explains:
“While it is of no great surprise, it is incredibly sad to hear that many older homeowners may be forced to sell their homes in order to subsidise their retirement.
“There are undoubtedly many for whom downsizing is the most suitable option, those who no longer need a larger property. However those who do not want the stress of moving or simply don’t want to go through the emotional burden of leaving the family home may wish to consider equity release.
“Equity release allows a homeowner to utilise their housing wealth without needing to ‘sell up’. By taking out an equity release plan, the homeowner can withdraw some of the fund tied up in their property whilst retaining the right to live there.”
Content correct at time of publication