Equity release 'can help all the family'

Older people are increasingly using equity release as a way of helping out their offspring in times of need, according to a recent market report.

Some 35 per cent of retired homeowners used cash released from their homes to assist or treat their family and friends in the first quarter of 2010, Key Retirement Solutions (KRS) found.

Dean Mirfin, KRS group director, said that it is "striking" that so many pensioners are confident about using equity release to help others rather than themselves.

"Despite falls in property values over the past couple of years many find that they can comfortably raise the amounts they need from the current wealth tied up in their homes."

However, home and garden improvements remained the most popular reason for equity release, accounting for 58 per cent of people.

It follows news that life assurance group Just Retirement has announced considerable growth in the number of equity release applications it handled in the second half of 2009.

Ashall Glover Financial Services are equity release specialists.