Equity Release  

Equity released from property hits £1.71bn in 2018

"It really has vast potential, and l am sure current and potentially new equity release providers are looking into this market."

Lena Patel, chartered financial planner for ISJ Independent Financial Planning, said: "The increased values in property in particular parts of the country have led to clients having large inheritance tax bills coupled with clients potentially having large pensions pots, which have left them asset rich and liquid cash poor.

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"Rather than accessing their pension, they may decide to release some equity from their property and leave the pensions to their beneficiaries as a part of inheritance tax planning.

"Longevity of people is increasing and many retirees find themselves in the 'sandwich generation' elderly parents and adult children still being dependent upon them.

"In certain circumstances using equity release can be a benefit to help access cash funds to help children put a deposit in a home, pay for weddings or spend on themselves without having to potentially move or downsize. Hence demand is being driven by a number of factors."

aamina.zafar@ft.com