Recent figures suggesting that nearly £1 billion was withdrawn by over-55s through equity release in the first three months of 2019 show how the ‘rent in retirement’ option is growing in popularity.
That’s the claim from Girlings Retirement Rentals, which says 20,400 home owners borrowed equity release against their properties in the first three months of this year, with the average owner taking out a lump sum of £97,763.
Girlings business director Jamie Turnbull says that whilst equity release suits some people, there are alternatives such as downsizing and mainstream sector renting which could make people financially better off.
“We have seen a year on year increase in the number of people choosing to sell their family home to downsize and rent, instead of buying. One of the main benefits is to have access to all their capital without paying interest, like many people have to do when taking out equity mortgages” says Turnbull.
“By selling up and renting people can choose to invest and earn money on their savings, as well as have a lump sum to spend on things like home improvements or helping family. Obviously with renting there are no stamp duty costs either.
“Often when people rent they can plan their finances more carefully as they know their monthly outgoings plus there are no surprise bills for upkeep and maintenance when people own their home. The main barrier to renting in our experience is security of tenure. However with most of our properties coming with assured or ‘lifetime’ tenancies this doesn’t need to be an issue.
“Renting enables people to downsize to a more manageable sized property, release capital, save on bills and enjoy additional benefits such as access to a ready-made community and services they may need when they are older. They can then just get on with enjoying their retirement” concludes Turnbull.
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Are we thick!! Do some of these clowns not think we can think for ourselves, equity release one of the most highly regulated product on the market, fixed rates of 3.6% for life, interest repayments if you want. Take out say 50% of value, enjoy your life.
most of these retired people rent ready made block of flats with a inhouse warden. They would not even consider PRS. Majority of us would acknowledge the lack of tenants in retirement age in PRS. so what do they know.
Very few LL would wish to get rid of senior citizen tenants.
Providing the LL is able to give as much assurance as they can reasonably do that the tenancy will continue for as long as required then such elderly tenants can rest assured that their LL won't be booting them out.
That way cash from a PPR property sale can be hidden away from HMRC and the Council.
This is what Ronnie Corbett did.
He rented.
No LL would object to being paid cash.
Plenty of creative accounting possibilities with cash!!
Lots of oldie tenants paying cash at the alleged rent but maybe it isn't; who would ever know!?
Got to do whatever it takes to prevent HMRC and the Council robbing the asset value.
Be a tenant then nothing to be robbed.
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