Parents ‘receiving support from children over equity release’

Posted 17/11/2009

Older homeowners are increasingly receiving support and encouragement from their children to use equity release to free up much-needed funds, according to research.

Equity release specialist Key Retirement Solutions has revealed that 85 per cent of its customers are parents, with 90 per cent of those having consulted their family over their decision to release equity.

This is despite the perception of equity release as a financial option used more commonly by childless homeowners who are unconcerned with inheritance issues.

Dean Mirfin, group director at Key Retirement Solutions, suggested that this change reflects the incentives many equity release plans offer for those with families.

He said: “The fact that many plans now also offer inheritance guarantees is also providing comfort for those parents who hold this as a priority, making the decision to release equity more agreeable.”

This comes after Safe Home Income Plans last week highlighted the advantages that equity release can provide for those looking to cover the cost of long-term care during their retirement years.