£50bn of BTL property wealth available via equity release

£50bn of BTL property wealth available via equity release

New calculations by Retirement Advantage estimate that there is almost £50bn available to buy-to-let landlords aged over 55 in the UK via equity release.

The estimate is based on calculations using publicly available data to estimate the number of buy-to-let properties in the UK owned by over-55s, the minimum age for equity release eligibility.

Combined with the latest house price average, and using Retirement Advantage’s own equity release calculator, it estimates that there is £47bn which could be available to over-55 buy-to-let landlords via equity release.


Alice Watson, Head of Marketing at Retirement Advantage Equity Release, commented: “There is a substantial community of buy-to-let landlords in the UK. Property remains an important element of a diversified investment portfolio, which explains why so many over-55s still choose to become landlords. Equity release could offer a useful financial boost at a time when mortgage interest tax relief is being phased out from the buy-to-let sector, and as rule changes could affect the affordability of mainstream mortgage finance for portfolio landlords.
 
“Tapping into property wealth won’t be right for every buy-to-let landlord, but the best way to find out is to adopt a holistic approach to finances and have an open conversation with a financial adviser. If only a proportion of landlords embrace equity release, it could lead to billions of pounds being freed up to support or even enhance their retirement. Equity release is also often used for home improvements, gifting to family and servicing other debts.
 
“We have spoken to advisers who believe that equity release for buy-to-let will particularly appeal to landlords with portfolios who want to make the most of their investments as their circumstances change later in life. Equity release can allow older landlords to raise capital without effecting their surplus income, and to borrow against properties at an age that few mainstream mortgage lenders would consider.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

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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
zoe glover 05 Oct 2017

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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RyanGeo
RyanGeo 18 Sep 2017

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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