The vast majority of equity release customers are consulting their children before signing on the dotted line, new figures have revealed.
Independent equity release specialists, Key Retirement Solutions, have found that 85% of those holding equity release plans are parents. In addition, 90% of people with children are consulting their offspring before entering any plan, up from 80% four years ago.
According to the company’s report, which analysed data from 1,761 clients, the equity release demographic is far removed from the childless stereotype usually associated with the plan.
Key Retirement Solutions experienced sales growth in each of the first three quarters of 2009, as equity release plans become more popular in the UK. And Group Director, Dean Mirfin, has welcomed the change in consumer values.
"The figures reveal that those releasing equity are doing so not only with the knowledge of their children but also with their support to do so,” said Mr. Mirfin.
"We have seen considerable changes in attitude amongst the children of those who look to release equity from their homes and we actively encourage their involvement throughout the advice process.”
“The fact that many plans now also offer inheritance guarantees is also providing comfort for those parents who hold this as a priority, making the decision to release equity more agreeable."
Tom Bridge, Managing Partner of Residential Property at Stephensons Solicitors LLP, advises home owners on their equity release transactions.
He said: “Equity Release enables the over 55s to enjoy a more comfortable retirement by releasing equity in the home. It is an option increasingly favoured because it allows people to make home improvements, travel, help their children financially and improve their standard of living generally.
“We have completed numerous equity release schemes for clients and have the necessary experience to conduct the legalities involved.”
Stephensons' equity release specialists can provide free initial advice and a consultation over the phone. The residential conveyancing department is also able to provide legal advice on Drawdown Lifetime Mortgages and Home Reversion Plans.