Green light for equity release as 76 per cent happy to go without property inheritance

Published: 01/09/2011

For the majority of over-55s, their home is their biggest asset, and will therefore account for the lion’s share of their loved ones inheritance. It is for this reason why so many people are reluctant to consider equity release, given it would diminish that inheritance pot. But they needn’t be so concerned.

A recent survey by Aviva has found 76 per cent of people are “happy for their parents or grandparents to use equity release to help fund their retirement”¹.

However, with the topic of inheritance such a taboo, retirees are unaware of this overwhelming majority.

With the rising cost of living and changes to State pensions, “equity release has become increasingly popular as a method of funding retirement”¹ especially given the average house price for the over 55s is £231,306.

Clive Bolton is the insurance group’s Retirement Director:

“Despite the British taboo of discussing inheritance, it seems that three-quarters of Britons are happy for their parents to use the cash in their property to enjoy a better lifestyle in retirement. Retirees should be encouraged to talk openly with their families about their plans and dreams for the future.

“Not everyone has the funds in place to support the retirement they once thought possible and we encourage those approaching retirement to look at their full range of assets, including pensions, investments and property.

“Equity release could be a solution for some, as it allows people to turn the potentially dormant capital in their homes into cash without having to move, thereby helping them make the most of their retirement years.”¹

Anyone considering equity release is strongly advised to seek advice from both professional financial and legal equity release advisers. Goldsmith Williams Solicitors are equity release specialists and can help explain the legal nature, implications and effects of an equity release plan.

It is also very important to discuss the idea with your family. While we appreciate it is a difficult, and potentially awkward, subject to broach, it is a good idea to involve those affected in your decision making process, or at least inform them of your decision. This way, it will not be a surprise come inheritance day thus avoiding any potential conflict.

Source:
¹Mortgage Solutions (Aug 2011)

Content correct at time of publication