Equity Release Industry Surging

Property wealth is proving to be a lifesaver for many retirees, as thousands more people look to release equity from their homes to subsidise their living. We look at the reasons why!

In recent years it has also become apparent that more people of retirement age are having to work for longer in order to keep up the standard of living that they have become accustomed to – as well as pay off debts that still languish over their heads. The latter, for many people, has proven a big problem, which is why a large number are relying on their property and the equity in the bricks and mortar to help them get back on an even keel. This is something that the younger ‘generation-rent’ won’t be able to fall back on in decades to come, and this is why many experts are forecasting a social care crisis in fifty years. But that’s another topic that needs addressing at another time.

On the subject of property wealth and equity release, according to a well-known mortgage provider, the scale of people releasing equity from their homes in a bid to free up money for renovations has hit a four year high of around 37 per cent. Similarly, around 29 per cent of people have released money from their property in a bid to close off debts that they have had for a long time. The figures speak for themselves. The amount of people releasing equity from their home is now at an all-time high.

Despite the apparent surge in people opting to go down the equity release route, however, we still advise that people exercise caution before diving head long into this idea. Equity release isn’t for everyone, and it is entirely dependent on circumstances as to whether the scheme will work and bring rewards.

Interest is a big thing, as is thinking of loved ones with regards inheritance. Children won’t be able to benefit from any rise in the value of the part of the property that was sold, for instance.

Many people, after researching into equity release, realise that downsizing is a better way of maximising their wealth in property, as money can be made from the difference when the larger home is sold.

As with anything, research is key. Never jump into something without weighing up the pros and cons. On a wider note, it is worth remembering that every recession and financial crash has followed a surge in people releasing equity from their properties.