Our new Later Life Finance service: the first of its kind in the property sector
Knight Frank Finance, part of the Knight Frank group, has launched a Later Life Finance team, making us the first major player in the property sector to offer this service to those aged over 55s.
The team will offer a suite of products designed specifically for homeowners over 55, including equity release options and retirement interest only (RIO) mortgages.
Over 55s hold the majority of all property wealth in the UK (c.75%), and equity release has become an increasingly popular way for them to access this wealth.
More choice and flexibility of equity release products has meant the mortgage market has evolved in recent years, to better meet the needs of those who are planning for later life and retirement.
David Forsdyke of Knight Frank Finance commented: “We are seeing older people look to release equity from their primary residence for a number of reasons, including helping children financially, making home improvements and enhancing their quality of living, or to take the holiday of a lifetime. At the same time, we have seen a steady decline in pensions and savings, with retired people in the UK often finding themselves asset rich, but cash poor.”
“The ‘bank of Mum and Dad’ or ‘bank of Grandma and Grandad’ has played a major part in fuelling the growth in equity release, as parents look to gift their children and grandchildren a sum of money to help them buy their first home.”
Knight Frank’s research shows that the number of people aged over 65 living in the UK is forecast to increase by 20% to 12 million by 2027. Advancements in healthcare mean individuals are living longer lives and managing health conditions better. Indeed, the cohort of 90+ year olds is expected to rise at an even faster rate, by a third, to more than 750,000 people over the same time. The need to provide suitable financial and housing options for these individuals is more important than ever.
The Later Life Finance team can also provide advice for those who need a short-term solution to help them downsize or buy a retirement home.
Knight Frank’s calculations suggest a need for three million retirement properties to house the number of people aged over 65, based on the assumption that 25% of over 65s in their existing homes would consider downsizing into some form of specialist retirement living.