Maximising your assets for financial freedom
by Nicki Sparks, Independent Mortgage Adviser Dentons Mortgages
UK homeowners are currently sitting on a significant amount of property wealth. The total amount of housing equity available to homeowners over the age of 55 now stands at an estimated £622bn, according to estimates published by Canada Life.
These figures, based on property values from the latest Halifax quarterly regional house price index and analysed by Canada Life, revealed that the amount of equity available has increased marginally from when the data was last analysed in Q2 2023, when it stood at £616bn.
Equity tied up in property can potentially be unlocked through Equity Release, providing homeowners aged 55+ with access to funds for various purposes, including property purchase, supplementing retirement income or long-term care costs. The Financial Conduct Authority (FCA) data highlights the growing trend of utilising property wealth in retirement planning.
Equity Release allows homeowners to access a portion of the value of their property while retaining ownership and the right to reside in their home. The two main types of equity release are lifetime mortgages and home reversion plans. With a lifetime mortgage, homeowners can borrow against the value of their property, with the loan and interest repaid when the property is sold, typically upon the homeowner’s death or permanent move into long-term care. Home reversion plans involve selling a portion or all the property to a provider in exchange for a lump sum or regular payments.
It’s important to carefully consider the implications of equity release, including the impact on inheritance plans and potential eligibility for means-tested benefits. Seeking professional financial advice from a qualified and regulated equity release adviser is highly recommended to ensure a comprehensive understanding of the risks and benefits involved.
Kay Kowalewska | Independent Mortgage Adviser Dentons Mortgages
Nicki Sparks | Mortgage Consultant Dentons Mortgages
Email | enquiries@dentonsmortgages.co.uk
Website | www.dentonsmortgages.co.uk
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