Equity release firm Retirement Advantage – which recently launched two new products aimed at buy to let operators aged 55 and over – says there is almost £50 billion available to investors if they want it.
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 calculations, it estimates that there is £47 billion which could be available to over-55 landlords via equity release.
“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” claims Alice Watson, head of marketing at Retirement Advantage.
“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 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” she adds.