Research by Saga has revealed that people are now using their houses as part of a sophisticated approach to funding later life. Three quarters of people choosing equity release now opt for a drawdown product, which enables them to release money as and when they need it and minimises interest payments.
For a fifth of over 50s the desire to stay in the family home is so strong that they would not consider moving. Many spend money on home improvements so they can stay in their home for as long as possible. More than half of people say they use some of the initial drawdown to pay for major home improvements (59%). On average, people unlock £13,000 to modernise their homes or make it suitable for them in their old age, however using a drawdown service allows them to return for more money in case of any leaks or DIY disasters.
However, the Saga research also found that many are keen to use the money to treat themselves and their family. A third of people have released an average of £6,000 to cover the cost of a well-deserved holiday of a lifetime, while a fifth give an average of £28,000 to their family showing they truly are the generous generations as this money may help put their children or grandchildren on the property ladder. It may also help cover one-off events such as children’s weddings or grandchildren’s round the world trips that people may not have been able to plan for.
Contact our Family Lawyers
For advice on equity release and other legal services for the elderly, contact our family law solicitors based in Edinburgh, Scotland, to find out how we can help you. Click here to contact us or telephone 0131 202 7516.