Older homeowners urged to take advantage of property price boom and think about equity release
Older homeowners are being urged to take advantage of the property price boom and release equity in their home to boost their pension pots.
SunLife, a financial services company for people aged 50 and over, has seen a 53 per cent increase in householders using its free equity release calculator in recent months.
It says the average homeowner could release an extra £13,000 compared to just more than two years ago as property prices hit a record high for the fourth consecutive month, with an average England asking price of £271,434, according to the latest UK house price index, and £183,403 in Chesterfield up 15 per cent on 12 months ago.
SunLife says people aged over 55 can release up to 60 per cent of their home’s equity depending on their circumstances – meaning homeowners could enjoy thousands more to enjoy their retirement with, compared with how much they could have released just two years ago.
Ian Atkinson, SunLife marketing director, said: “If you are over 55, equity release is a way to access some of the money tied up in the value of your home.
“The money can be paid to you in instalments or in a lump sum and can prove useful to fund retirement, pay off a mortgage or supplement smaller pensions.
“The amount you can take out is different for everyone and depends on factors like the value of your home and your age. The good news is, with increasing house values, many people could find themselves sitting on a healthy nest egg, should they need it.”
See SunLife’s free equity release calculator and eligibility check at sunlife.co.uk/equity-release