A leading specialist in equity release has revealed this week the average amount of money being released by customers from their homes.
Bower’s figures show that later life homeowners are unlocking an average of £67,735 from their homes, and the tax-free cash is theirs to spend in any way they choose!
So, what are homeowners choosing to spend their money on?
Figures released last year from Bower showed the top ten reasons for homeowners turning to equity release are…
- Home improvements (38.6%)
- Pay off mortgage (33.9%)
- Live retirement as planned (29.8%)
- Pay off debts (26.6%)
- Help family (15.9%)
- Holiday / car (12.8%)
- Holiday home (0.9%)
- Pay for care (1.9%)
- Cosmetic work (0.7%)
- Divorce (0.3%)
A peaceful nights sleep
With £67,735 in tax-free cash to spend, equity release customers have a world of options in front of them, many of which can make our day-to-day lives more enjoyable and, importantly, less stressful.
According to Prudential, people who entered retirement in debt in 2016 owed a total of £18,800 in outstanding mortgages, loans and credit cards.
It seems a peaceful night’s sleep is on the ‘to-do’ list for many of our customers.
Paying off mortgages and credit cards featured as a reason for more than half of plans arranged through Bower in the first half of 2016.
An extension for your home
Making home improvements has long been a top motivation for homeowners arranging an equity release plan.
As we get older, being able to add a ground floor bedroom and bathroom, for example, can help us to remain in our family homes for longer, rather than move to a traditional bungalow.
Of course, not everybody wants or needs increased accessibility just because we’ve reached retirement age. Many of today’s retirees simply require more living space – a modern conservatory, perhaps, or an extra bedroom for when the grandkids come to stay.
With more time in retirement to spend on favourite pastimes and learning new skills, a garage refurb would be an ideal workshop or cinema room.
Cost: The cost of a typical single-storey extension is around £25,000*.
A world cruise
On the bucket list of many, finding the time and money to go on a world cruise can be nigh on impossible during our working lives.
It’s a different story in retirement, however, when the world is quite literally our oyster!
Equity release customers often state holidays as a top reason for unlocking some of the tax-free cash from their homes.
After years of working hard and saving, you can now afford the luxury holidays you perhaps only dreamt of booking before.
A world cruise will take you to breath-taking destinations across all four corners of the globe. Luxury cruise liners offer quality entertainment and leisure facilities, all-inclusive dining, fascinating lectures and hobby classes, and every opportunity to meet new life-long friends.
What more could you ask for from a once-in-a-lifetime trip?
Cost: A 99-day world cruise currently starts from £9,999 per person with P&O
Speak to a specialist
If you would benefit from a lump sum in retirement, then why not speak to one of our specialists to find out more?
Equity release is usually a lifetime commitment, so it is recommended you speak to an independent retirement lending specialist before making a decision.
Our award-winning specialists take the time to explain all the advantages and disadvantages of each type of plan, including, for example, how equity release will reduce the value of your estate and will reduce the amount of inheritance you leave.
As part of our trusted service, if we do not think equity release is the best option for you, we will tell you.
Arrange your free, no-obligation initial consultation in the comfort of your own home with a Bower specialist on free phone [tel].
This is an equity release plan. To understand the features and risks, please ask for a personalised illustration. Think carefully before securing other debts against your home.