Most of us are all too aware of just how difficult it is for youngsters to get their feet on the property ladder these days. And, unfortunately for our children and grandchildren, this doesn’t seem likely to change any time soon.
Of course as parents and grandparents we all want to help our loved ones in whatever way we can and the loving Bank of Mum and Dad or the nurturing bank of Granny and Granddad are now commonplace routes to financial support. However with prices continuing to rise it’s no wonder many have started looking outside of traditional routes.
Figures released by Canada Life reveal that 2018 saw 46 first time buyers given a handy leg up onto the property ladder thanks to Equity Release. That’s one customer out of every 34 releasing equity to help their children or grandchildren to buy their first home.
And it seems, Canada Life are not alone in their findings. When specialist Bank Aldermore recently asked customers how they planned to to help their children secure a deposit, Equity Release came second place, with 24% of people citing this as their chosen route to financial support.
As highlighted by Alice Watson of Canada Life “…Rising property prices can cause older homeowners to worry about how their loved ones will get onto the housing ladder…”
This worry also sees parents dipping in to their own savings, downsizing, remortgaging, cashing in pension lump sums and selling second properties, all with a view to getting their children that all important foot on the ladder.
As Alice goes on to say “Many are increasingly aware of the intergenerational benefits of unlocking their own property wealth to help the younger generation secure their first home.”
So, whilst Canada Life also report that half of their customers are still using Equity Release to make improvements to their home, the number of people freeing up cash to directly help younger family members is most certainly on the up.
Here at The Right Equity Release we are certainly seeing this as a growing trend. In addition to helping younger family members secure deposits we are also seeing equity released to help fund university fees and all the associated living costs.
“ All I have ever wanted is to provide the very best for my children. There were times of course where that wasn’t possible and we were forced to compromise. So, when we realised that we could use the equity in our own home to help our daughter buy hers we jumped at the chance. She is now settled in to her lovely first home and we couldn’t be happier.”
If you would like to use Equity Release as a way to help your family the first step is to speak with a trusted, qualified adviser. During a FREE no-obligation meeting you can ask any questions you have and our advisor will get to know you and understand your needs. After assessing the current market they will then suggest the most suitable equity release plan for you. Expert advice and support is crucial and helps avoid reducing the value of your estate or compromising any entitlement to means-tested state benefits.
Thanks for reading!