Data released by SunLife reveals that homeowners over 50 have seen their homes more than double in value over the past 20 years, from an average of £113,365 in 2000 to £240,681 in July.
According to Nationwide, house prices rose by 2% from July to August and a further 0.9% month on month to September, meaning the average over 50s home could now be worth £247,704 on average – a rise of £7,023 in just two months.
Simon Stanney, equity release director at SunLife says that this rise will be welcome news to many older homeowners who are worried about funding their future.
He says: “Our research shows that one in four homeowners over 50 say they are worse off than they expected to be at this time in their lives and are worried their money will run out before they die. Of those still working, 43% say they don’t think they will have enough money for retirement while 10% say they ‘don’t know’. Amongst those that are already retired or semi-retired, 15% don't think they have enough money to last.”
The data also shows that 20% of over 50s are planning to use their property to fund their retirement, so the recent rise in property value will be welcome news.
Stanney continues: “Downsizing is one way to release the equity tied up in your home, but our survey reveals that more than half of older homeowners don’t want to move, so for those homeowners over 55 who need to boost their finances but don’t want to move, equity release can offer a solution.”
Equity release allows you to access the value tied up in your home without having to move. You can even take out a plan if you have an outstanding mortgage.
Simon concludes: “With equity release, the money is tax-free, and you can use it for whatever you like once you have paid off any existing mortgage. For many, this will be to boost their incomes or maybe help family who may need financial support."