Equity Release in Yorkshire

Equity Release in Yorkshire – A Comprehensive Guide

Equity release is a popular way for older homeowners in the UK to access the equity tied up in their property and receive extra money to fund their lifestyle or pay off debts. This option is particularly attractive for many people in Yorkshire, as it enables them to stay in their homes and continue enjoying the local scenery and community while releasing some of the value of their property.

Before diving into equity release, it’s important to understand what it entails. Essentially, equity release enables homeowners to release a portion of the equity in their property without having to sell it or move out. There are two main types of equity release in the UK: lifetime mortgages and home reversion plans. With a lifetime mortgage, the homeowner takes out a loan against their property and repays it when they pass away or sell their home. With a home reversion plan, the homeowner sells a portion of their property in exchange for a lump sum of cash or a regular income.

Equity Release in Yorkshire: Your Options

In Yorkshire, you have a variety of equity release options available, including:

• Lifetime Mortgages: This type of equity release allows you to access the equity in your home as a lump sum or as a regular income, without having to sell your property or move out.
• Home Reversion Plans: This type of equity release allows you to sell a percentage of your home in return for a lump sum or regular income, while retaining the right to live in the property for the rest of your life.

Yorkshire Over 55’s

Yorkshire is one of the largest and most densely populated regions in the UK, and its demographic profile has been changing rapidly over the years. In particular, the population of Yorkshire over the age of 55 has been growing steadily, reflecting both the general aging of the UK population and the fact that Yorkshire is a popular place for retirees.

Recent data from the Office for National Statistics (ONS) shows that, as of 2021, the number of people over the age of 55 in Yorkshire is estimated to be around 2 million, representing just over 30% of the total population. This is an increase of over 20% compared to a decade ago, and the trend is set to continue, with the ONS projecting that the number of people over 55 in Yorkshire will reach 2.3 million by 2030.

This growth in the older population is having a significant impact on the region, both in terms of the services and support needed to meet the needs of this demographic, and in terms of the economic benefits that can be derived from a larger and more active older population. In particular, many retirees are choosing to stay in the region, rather than moving away, which has helped to boost the local economy and support a range of local businesses and services.

Overall, the growth of the population of Yorkshire over the age of 55 is a positive development for the region, and one that is set to continue in the years to come. As such, it’s important for local authorities and businesses to respond to the needs and aspirations of this demographic, in order to ensure that the region remains a vibrant and attractive place to live and work for people of all ages.

Yorkshire Homeowners Over 55’s

The number of people in Yorkshire over the age of 55 who own their own homes is a significant and growing segment of the population. According to data from the Office for National Statistics (ONS), as of 2021, around 75% of people over the age of 55 in Yorkshire own their own homes, compared to a national average of around 60% which is roughly 1.5 million people.

This high level of homeownership among older people in Yorkshire reflects both the strong housing market in the region, and the fact that many people in the region have been able to build up substantial levels of equity in their homes over the years. This equity can then be used to support their later years, whether through downsizing, equity release, or other means.

The trend towards higher levels of homeownership among older people in Yorkshire is expected to continue, with the ONS projecting that the number of people over the age of 55 who own their own homes will reach 1.7 million by 2030, representing a growth of over 20% compared to today.

This growth in the number of older homeowners in Yorkshire is having a significant impact on the region, both in terms of the services and support that are needed to meet the needs of this demographic, and in terms of the economic benefits that can be derived from a larger and more active older population.

Choosing the right Equity Release plan for you.

When choosing an equity release plan, it’s important to consider your individual circumstances and to seek advice from a financial advisor.

However, with so many equity release providers and products available, choosing the right one can be a daunting task. Here are some of the key factors to consider when selecting an equity release provider:

Reputation and experience:

Research the reputation and experience of the provider, including how long they have been offering equity release products and how many customers they have helped. Look for online reviews and testimonials from satisfied customers.

Product range:

Ensure that the provider offers a range of equity release products that suit your specific needs, including lifetime mortgages and home reversion plans. It is important to choose a provider that offers a wide range of options so you can compare different products and find the one that best suits your financial situation.

Fees and charges:

Compare the fees and charges associated with the different equity release products offered by each provider. Shop around for the best equity release rates and look out for any hidden costs or charges that may not be immediately apparent. It’s important to consider the long-term impact of fees on the overall cost of the equity release plan.

Customer service:

Choose a provider that offers excellent customer service, including a dedicated case manager who can help you through the process of taking out an equity release plan. Check to see if the provider offers free, no-obligation advice and support.

Regulatory compliance:

It’s essential to choose a provider that is regulated by the Financial Conduct Authority (FCA), and a member of the Equity Release Council, which ensures that the provider is subject to strict rules and regulations. This provides additional peace of mind for consumers, as it means that the provider is operating within the law and that their customers’ best interests are protected.

Payment options:

Consider the different payment options offered by the provider, including lump sum payments or regular payments, and find out what happens if you want to make overpayments or pay off the equity release plan in full.

Choosing the right equity release provider can be a complex and time-consuming process, but taking the time to carefully consider your options and compare providers will ensure that you make the right choice. It’s important to work with an experienced equity release advisor who can help you understand the different products available and guide you through the process of taking out an equity release plan.

Pros and Cons of equity release in Yorkshire

So what are the pros and cons of equity release for homeowners in Yorkshire? Let’s take a look.

Pros of Equity Release in Yorkshire:

• No need to sell your home or move out
• Extra money to fund your lifestyle or pay off debts
• Potential to receive more money if you qualify for medically enhanced rates
• Opportunity to stay in your home and enjoy the local community

Cons of Equity Release in Yorkshire:

• Reduction in the value of your estate
• The loan plus interest will need to be repaid when you pass away or sell your home
• Could impact your eligibility for means-tested benefits
• Interest rates can be higher compared to traditional mortgages

Read our in-depth guide on ‘is equity release a good idea‘.

Cost of equity release

It’s important to keep in mind that equity release does come with costs. According to Martin Lewis at Money Saving Expert, the average cost to set up equity release is between £1,500 and £3,000. Before proceeding with equity release, it’s highly recommended to seek professional advice from an Equity Release Council-approved adviser. They can help you choose the right product for you and ensure that you fully understand the implications and risks involved.