Eq­uity re­lease helps re­tired home own­ers to cash in

Dumfries & Galloway Standard - - FOOTBALL FESTIVAL -

Key’s Pen­sioner Prop­erty Eq­uity in­dex shows that over-65s in Scot­land made an ex­tra £12,000 each from their prop­er­ties be­tween May and Au­gust 2017.

The strength of the hous­ing mar­ket means prop­erty wealth is mak­ing a ma­jor con­tri­bu­tion to re­tire­ment stan­dards of liv­ing as the eq­uity re­lease mar­ket ex­pands.

Av­er­age eq­uity re­lease cus­tomers are cash­ing in £70,625 of prop­erty wealth.

Eq­uity re­lease, known as a life­time mort­gage, is only re­paid ei­ther when you die or move into long-term care. Rea­sons peo­ple re­lease prop­erty wealth in­clude home im­prove­ments (64 per cent), clear­ing debts, with three in 10 pen­sion­ers us­ing the cash boost this way, a third us­ing it to fund hol­i­days, and a fur­ther 23 per cent us­ing it to pay off their mort­gage. More than a fifth use it to help rel­a­tives.

Dean Mirfin, chief prod­uct of­fi­cer at Key Re­tire­ment said: “The strength of the hous­ing mar­ket over the three months has sig­nif­i­cantly boosted prop­erty wealth for pen­sion­ers mak­ing as much as £3,500 a month.

“Prices may not con­tinue to grow as fast but pen­sion­ers who have paid off mort­gages can still rely on tax-free re­turns no mat­ter what hap­pens in the short and medium term.

“The av­er­age home­owner is re­leas­ing through eq­uity re­lease the equiv­a­lent of the gains made since 2010 and prop­erty wealth is hav­ing a dra­matic ef­fect on the stan­dards of re­tire­ment liv­ing for many thou­sands across the UK.”

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