Equity release can help Brits who have seen their grown-up children leave home to make use of the space and value of their property, Equity Release Supermarket has claimed.
After the youngsters have flown the nest, older Brits are reportedly left with 34 square metres of empty space in their homes.
Mark Gregory (pictured), founder and chief executive of Equity Release Supermarket, said: “Our survey found there is plenty of space in the family homes of empty nesters which is going to waste, and it’s not just space – but possible financial wastage.
“There tends to be fond memories and a certain amount of nostalgia linked to a property, so it’s difficult for people to say goodbye to a family home.
“One option for empty nesters to raise equity is to simply sell the family home and downsize.
“However, with a reluctance to say goodbye to all those memories, many, incorrectly believe that downsizing is the only way to release their financial security tied up in a property, when the reality is that equity release can be an alternative solution.
“The research highlighted that many over-50s are effectively sitting on thousands of pounds of wasted space – and with the aid of equity release – could be used to ease people’s financial situation, enhance retirement or enable them to explore various other opportunities in later life.”
A third of over-50s are planning to give money to their offspring in their later years.
A fifth plan on bestowing some of their wealth on their grandchildren, whilst 38% dream of luxurious locations and spending their money on holidays to make the most of their retirement.
However, despite a willingness to spend their stockpile in later life, half of those surveyed said they are worried about their financial future.
Just 12% are considering taking out equity in their property to stabilise their financial future, compared to a third who have contemplated downsizing.
Gregory added: “Many people don’t understand the features and benefits of equity release as a possible solution to support retirement.
“Therefore, taking equity out on their home is not always the first port of call, and they end up opting for alternatives that may not be the best option to suit their circumstances.
“Whilst it’s not the only option to raise capital for an enhanced retirement, equity release could be beneficial and should always be considered with the right financial advice.”