1 in 5 equity release customers 'shocked' with low valuation

1 in 5 equity release customers 'shocked' with low valuation

Research from Bower Retirement Services has found that almost one in five people who take out equity release have received lower than expected property valuations when they take out plans.

Advisers estimate that 19% of customers over value their homes before starting an application, despite the average value of homes increasing.

Around 70% of advisers questioned say they have seen increases in the average value of homes owned by customers they deal with and 21% are seeing substantial increases in property values.

14% of advisers say the average house price of customers they deal with is £500,000 or more, underlining the expansion of the equity release market.


Bower’s research shows advisers expect continuing growth in the equity release market during 2016 but there is confusion about the possible impact of regulatory changes from the FCA review of the market and the Financial Advice Market Review.

Around 35% of advisers say they are unsure if the FAMR will be positive for the equity release market while 36% are not convinced the FCA review looking at barriers to entry and the market in general will be positive.

Andrea Rozario, Chief Corporate Officer at Bower Retirement Services, said: “Lower than expected valuations are an emerging issue for the equity release market with many customers over-estimating their property’s worth.

That can come as a shock when people are making the decision to access their property wealth as part of retirement planning underlining the need for specialist advice and service throughout the equity release process. That becomes even more important as average property values of equity release customers are continuing to rise with increasing number of customers with houses worth £500,000 or more recognising how property wealth can help with retirement planning.”

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Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
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Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
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We have seen a surge in instructions over August and that should continue into September too.

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