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First time buyers benefitting from equity release

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The number of people releasing equity in their homes is on the rise, and with it comes a rise in first time buyers who are using those funds to buy their first home.  Kiri Saunders-Brown, equity release specialist in our Fareham office, reviews recent findings from Canada Life and advises on the steps you should take if you are considering equity release.

Helping children onto the property ladder

The findings from Canada Life show that in 2018 at least 46 first time buyers per week were helped by the bank of Mum and Dad who had released equity in their home.  This equates to 2.9% of the 82,791 equity release customers using the money to help fund their younger relatives purchase their first home. 

“It is a well known fact that many aspiring property owners struggle to make that first leap onto the property ladder due to the size of the deposit that is needed,” explains Kiri.  “Further research from specialist bank, Aldermore, revealed that of those using financial support from their parents to buy their first home, nearly a quarter of them were able to do this due to equity release.”

Home improvements remained the most popular reason for equity release in 2018, with 48% using the money to enhance their home or garden.  “The younger generation can also benefit from these types of renovation, as improvements to a property will only increase the value, meaning more money for any future inheritance or equity release,” continues Kiri.

Should I seek legal advice when considering equity release?

Equity release is an extremely practical way to release funds for home improvements, deposits for your children, or to form a foundation for your retirement.  It is however a complicated area of property law, and while there are several options open to you, releasing equity may not be right for you.  Kiri concludes, “In order to ensure that equity release is the right option for you, and that you are considering all of the implications, we would recommend you seek legal advice from experienced professionals before committing.  Engaging with a solicitor is an inevitable part of equity release as a solicitors certificate is required to release the funds; however approaching a firm with specialist, local advisors can ensure a swift and efficient service with the peace of mind of knowing you are making the right decision.” 

Our specialist equity release solicitors can provide you with pragmatic advice suited to you and your family.  With offices across Hampshire in Fareham, Portsmouth, Southampton, Waterlooville and Chandler’s Ford, we can offer you an appointment as soon as you are available to start the necessary paperwork.  To find out more about equity release you can contact Kiri and the Conveyancing team in Southampton on 023 8071 7438, email or visit our website here.  By coming to us to release equity to fund your children’s first home, you will also benefit from a £100 (plus VAT) discount on the conveyancing for that property if this is instructed simultaneously.

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This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.