Equity Release - what's the purpose?
Almost 25% of retired homeowners use equity release to help their families financially to the tune of £150m a year, according to new research.It found that, of the 1,262 retired homeowners it surveyed, 23% released equity from their home to pay an average of £23,328 to their families.
The money was used in a number of ways, from helping children clear debts to buying houses and cars.
A prominent provider’s representative commented : “Helping out family is a powerful motivation for retired homeowners and the sums being handed out are major amounts, with a total of nearly £150m given away last year.Retired homeowners have around £770bn of wealth tied up in their houses and many clearly feel financially comfortable enough themselves to be able to help others. It is crucial that families are involved when people take a decision to release equity from their home and if they are receiving the money all the better.”
The research found that retired homeowners in London give the biggest gifts on average, at £40,172, reflecting the higher property values in the capital.
Widows are the most generous to their families, handing out average cash gifts of £30,100. Married couples pay out an average of £20,258 to help out families.
The research also showed that sons are more likely to be the recipients of handouts than daughters. The average gift paid to sons alone was £21,131 compared to £18,625 to daughters.
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If you know anyone over the age of 55, who you think may benefit from looking into equity release, I am appropriately qualified to advise so please email me -
'mark@themortgagemonkey.co.uk'
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