UK retirees cash out to bolster Bank of Mum and Dad

UK retirees cash out to bolster Bank of Mum and Dad

An increasing reliance on the bank of Mum and Dad is one of the reasons that retirees are releasing funds from their home. It's a national trend that is very much evident throughout the country.

Soaring UK property prices increasing by 5.8% mean that parents, and even grandparents, are helping their family to get a foothold on the property ladder.
 
New research commissioned by retirement specialist Age Partnership found that whilst the most popular reason for releasing equity is to pay off any remaining mortgage – a requirement of releasing equity from your home - a generous 6% want to help out family members. Other reasons that retirees are releasing funds from their homes include; 4% of people want a brand new car and 9% simply desire a better quality of life.


Looking across the South of England, residents are releasing an average of £85,593 worth of equity from their homes, an increase of £2,500 since 2015. And further up the coast, research revealed that Northerners release an average of just £50,218 – a considerably lower sum than their southern counterparts.
 
The rise in the amount of equity being released is in line with the national average which has already seen growth in Q1 of 2017 up by 77%. This extra cash will go a long way in helping retirees fund the lifestyle they desire, and figures from the first quarter of 2017 indicate this trend is set to increase.

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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