Leading mortgage broker, Henry Dannell, has revealed how the average level of equity release can supplement the lifestyle of UK homeowners in their later years, helping to fund lifelong dreams such as the purchase of a classic sports car, joining an exclusive golf club, heading off on an around the world cruise and more.
There’s been a notable increase in the number of homeowners utilising equity release and the most common reasons for this are to aid younger family members onto the ladder or to fund lifestyle choices in later life.
In fact, previous research by Henry Dannell found that the average homeowner would need to release just 12% of the equity in their home to cover the average first-time buyer deposit.
But what about those lifestyle choices?
Well, the latest figures show that the average value of a home owned by those utilising equity release is £373,493 and so far this year, homeowners are releasing an average of 30% or £111,511.
For those eyeing up a new set of wheels, a Porsche 911 Carrera would require them to release 24% of their homes equity to cover the £90,000 price tag. Or for a finer vintage, say a Ferrari F355, the £85,000 price tag could be covered by just 23% of their home’s equity.
For something more practical, the full renovation of your home and garden would come in at £76,900, requiring equity release to the tune of 21%.
However, a number of other lifestyle purchases could be made for a far lower level of equity, such as an around-the-world cruise (7%), flying lessons, the purchase of a Rolex (3%), or maybe even covering the cost of your child’s wedding (4%).
But if you have your sights set on that exclusive golf membership, you may have to release more than the average 30%, with a membership fee to Queenwood Golf Club coming in at £200,000 and requiring 54% of equity released.
Director of Henry Dannell, Geoff Garrett, commented: “Equity release has been primarily utilised by homeowners in order to help their children climb what is currently a very high ladder where the cost of home buying is concerned.
However, it’s also very common for equity release to be utilised in order to supplement our lifestyles and splash out on those lifelong purchases that we may not have been able to justify previously.
Whether it’s a classic sports car, home improvements, a luxury watch or a dream holiday, a great deal can be purchased by releasing just 30% of your home’s equity or less.”
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