Knight Frank Finance, part
of the Knight Frank estate agency and property consultancy group, has launched
a specialist Later Life Finance operation.
Later Life Finance will
offer a range of products designed specifically for homeowners over 55,
including equity release and retirement interest only (RIO)
mortgages. The company says it is the first major player in the property sector
to offer this service to those aged over 55.
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.”
While equity release is not new, the arrival of such a high profile name in the market is certainly notable. Given the high end nature of the property Knight Frank generally deals in, it might be inferred that more high end property owners whose properties hold scope to release substantial amounts of equity are becoming more interested in this sort of product.