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Digsby

Equity Release 'in Growing Demand'

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http://www.justretirement.com/About-your-retirement/Retirement-News/Equity-release-in-growing-demand/

The Key Retirement research builds on figures issued by the Equity Release Council, which showed uptake of the financial solution stood at an all-time high in 2014, with record numbers of homeowners taking out plans to a total value of £1.38 billion.
Growth in the average amount of property wealth released was recorded in 11 out of 12 regions across the country. Londoners took the most, with the average figure in the capital recorded at £127,412. This is 19% higher than last year's average of £107,224. The lowest amount of property wealth accessed on average was taken by homeowners in Yorkshire & Humberside, who released the lowest amount on average at £44,647.

However, concerns were raised that equity release was used to clear credit card and loan debts, as well as mortgages. An estimated 30% of customers used cash to get out of the red, with a further 22% paying off mortgages, Key Retirement's study shows.

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Unfortunately, the better option right now would be to sell up and rent in retirement. But that would turn them into 'losers' overnight.

Edited by LiveinHope

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Unfortunately, the better option right now would be to sell up and rent in retirement. But that would turn them into 'losers' overnight.

Well it might be, if renting wasn't so cr*p. Who would relish the possibility of having to move every few months in their 70s and 80s?

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Well it might be, if renting wasn't so cr*p. Who would relish the possibility of having to move every few months in their 70s and 80s?

I get your point.

But I have rented the same property from the same private landlord for 20 years and so not moved my main residence once.

There are long-term rentals about and when retired you are more free to choose location.

Besides, you could declutter and, until you need care, you could live anywhere choosing the best rental market or climate or location at different times of the year.

Edited by LiveinHope

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I get your point.

But I have rented the same property from the same private landlord for 20 years and so not moved my main residence once.

There are long-term rentals about and when retired you are more free to choose location.

Besides, you could declutter and, until you need care, you could live anywhere choosing the best rental market or climate or location at different times of the year.

I suggest your experience is not reflective of the market as a whole. My guess is that vast majority of private sector renters have been moved on before they were ready. It happened to me at least 3 times during the couple of decades I was renting and that seems to have been the experience of my peers. Also finding a landlord who will agree to put a long let in writing seems extremely rare to me, and the default contracts reinforce this.

Lastly, I suspect there comes a point when you either don't want to or are unable to keep moving to find an optimal rental.

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I suggest your experience is not reflective of the market as a whole. My guess is that vast majority of private sector renters have been moved on before they were ready. It happened to me at least 3 times during the couple of decades I was renting and that seems to have been the experience of my peers. Also finding a landlord who will agree to put a long let in writing seems extremely rare to me, and the default contracts reinforce this.

Lastly, I suspect there comes a point when you either don't want to or are unable to keep moving to find an optimal rental.

I agree, but long rentals are out there, just not from the BTL brigade

Although I'm just on an AST - so what is that, 8 weeks notice ?

I could be moved out tonight - I just hope not.

I rented a lot of rubbish for 5 years and then put some effort into finding something decent - although the current rental might not equate to decent for everyone; the whole house only has one night storage heater (that's its sole heating) and the carpets throughout are 35 years old. I need to run a dehumidifier 24/7 to control the damp. It did get a new kitchen and double glazing last year though. I haven't seen the landlord for 3 years - if anything goes wrong I call the tradesmen and knock it off the rent. And the rent is below BTL market rates. The only drawback is that if I knew I would be staying for anywhere like 20 years, I'd have planted some fruit trees. (note to self - remember not to grumble)

I know quite a few properties that work like this in the area so my situation is not unique, although it's not common I'll agree and probably non-existent in some places. Still if you are retired you can move more easily to find similar (although you might want some heating).

Bear in mind, there are lots of snowbirds on the US east coast as a model for the mobile elderly

Edited by LiveinHope

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I get your point.

But I have rented the same property from the same private landlord for 20 years and so not moved my main residence once.

There are long-term rentals about and when retired you are more free to choose location.

Besides, you could declutter and, until you need care, you could live anywhere choosing the best rental market or climate or location at different times of the year.

friend of ours has one small BTL which has been rented to the same elderly retired man ever since he bought it, over 10 years ago now. Rent has barely been raised.

The older people get, the less likely I think they are to want to move - it's just too much hassle. Would especially apply IMO to most people anywhere near the stage of needing care. This friend's tenant didn't even want the inside redecorated when it was offered a year or so ago. He just couldn't be bothered with all the disruption.

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Oh dear....here we go again.

The bankers should have been regulated in 2008.

What makes you think 'bankers' are making these loans? Take a look who is on the ERC for a clue...

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What makes you think 'bankers' are making these loans? Take a look who is on the ERC for a clue...

Perhaps this is why I'm having trouble reconciling it with the BBA's December 2014 High Street Banking report:

the number of loans approved for equity withdrawal continues to fall, to its lowest annual total yet (81,000)

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