Older Scots Eager to Cash in on Property Wealth
Thursday, June 15th, 2017
on behalf of Boyd Legal
MONEY conscious Scots are ensuring they can lend a hand to relatives by taking advantage of their hard earned property wealth.
Plans for equity release, where homeowners cash in on the value of their properties, have increased by 39.5 per cent on Q1 figures for 2016 up to 510.
With an average release value of £42,379, savvy owners are taking the opportunity to utilise wealth accrued over the years in different ways – with 22 per cent saying they have passed cash onto to family and friends to help give them a leg up on to the property ladder.
Peter Boyd, Managing Director of Edinburgh headquartered Boyd Legal, suggested this news is a sign that equity release is in the midst of a change of public opinion.
He said: “Equity release has previously been done a disservice by an assumption that making money from your home was a last course of action and a misplaced stigma of having perceived debt later in life.
“However, property owners are beginning to switch on to the fact that their homes are assets that they can take full advantage of.
“It is very much the case now that equity release is a sensible and proven route to better retirement planning.
“While some people concentrate on getting cash in the bank, homeowners are wakening up to the fact that they been investing in bricks and mortar – and now is the time to take advantage of this.”
Across the UK, there were 8604 new equity release plans in Q1 2017 – a 58% increase on the same period in 2016. That saw a total amount of £663.3m of equity cash released, up 53%.
In Scotland, there were 510 plans made in Q1 2017, amounting to £21.6m and involving owners with an average age of 71.
On average, mortgage capital counts for around double the pension pot of most retirees.
This means that, rather than handing down an asset to children and grand-children, property offers families an opportunity to finance the beginning of younger generations’ home plans – as well as financing other opportunities such as clearing a mortgage, holidays or home improvements – without the need to downsize.
Peter added: “Properties involved in equity release planning in Scotland have an average value of over £184,000.
“Add the fact that any release is tax free and this becomes quite a lucrative opportunity.
“This means older property owners can continue to enjoy their current homes and help out their children and grand-children – a key concern for so many.”
Equity Release is available to Scots aged between 55 and 95.
Boyd Legal began life as Boyd Property in 2004 – primarily as estate and letting agents – but rebranded as Boyd Legal and moved into new showpiece offices in Edinburgh’s Queensferry Street in 2015.
To learn more about Boyd Legal, please visit: www.boydsolicitors.com
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