The number of people taking out equity release plans are up by 41% since June this year, according to figures released by the Equity Release Council.
There were 10,351 new equity release plans agreed between July and September this year. Over £963 million of property wealth has been unlocked this quarter.
Lump sum lifetime mortgages accounted for 4,545 of the new agreements at an average loan size of £99,691. This is up from £95,703 this time last year.
David Burrows, Chairman of the Equity Release Council, said: “People are living longer and retirement finances are increasingly squeezed as generous final salary pensions edge further to extinction. Many older households are already facing a situation where their expenses outweigh their disposable income, which makes access to property wealth an important pillar to support later life living standards.”
Is equity release a safe option?
Equity release can be the right choice for some people, though it does depend on your own circumstances. Some examples of when equity release could be the right choice for you may include:
- If you can’t or don’t want to downsize your home
- If you don’t have any beneficiaries to inherit assets after you pass away
- An independent financial advisor has recommended this option to you
- If you’re ‘asset rich’ but ‘cash poor’
- Your savings or other sources of income won’t meet your needs when you retire
Are there any eligibility requirements for equity release?
Meeting the criteria for an equity release agreement is fairly straightforward. You simply have to be aged 55 or over and own a property in the UK with a value of at least £70,000.
You can choose from a few equity release plans including:
- Lifetime mortgages: You take out a loan on your property but you don’t have to make any monthly repayments. You will still own your home.
- Reversion plans: Selling all, or part of, the property for a cash sum but retaining the right to live there for the rest of your lifetime.
How can we help?
Birchall Blackburn have helped thousands of retired homeowners release the equity in their home, to provide a tax free lump sum, a regular income, or both, and have provided independent legal advice to guide them through the process every step of the way.
Our team will provide helpful, independent legal guidance, in plain English, on the process of unlocking the value of your greatest asset – your home. If you have been advised that this is the best solution for you, taking into account your plans and expectations for your lifestyle in retirement, we can guide you through each step you need to take, right up to completion, and keep you fully informed along the way.
If you’ve been thinking about using equity release to unlock the cash in your home, get in touch with us at email@example.com or give us a call on 0800 614 722