4th December 2015
New research by the Equity Release Council reveals that three in five older homeowners have not had their house valued since they first bought it an average of almost 18 years ago. They estimate its worth to have increased by 156%, whilst the true figure is around 244%. This means that the average homeowner is underestimating their property’s value by about £90,000.
Across the UK, over-55s think house prices in their region have increased by an average of 4.4% in the last year, compared to an actual rise of 6.1% (ONS). And over the last decade, they think that house prices in their region have risen by an average of 21.8% compared to the actual figure of 42.8% (ONS).
These are significant differences. Knowledge of the true value of their property may well encourage many homeowners to utilise that wealth to fund a more comfortable retirement. Indeed, further Equity Release Council research has shown that four in five older homeowners would consider this route.
Furthermore, a common concern among those questioned was uncertainty about their options and the desire not to miss out on a financial development that would benefit them. This underlines once again the importance of seeking professional advice in connection with these sophisticated financial opportunities.
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