According to Key’s recent analysis, property wealth is being increasingly used to ease the financial struggles of divorce and separation, enabling silver splitters to stay in their homes and fund new properties.
Nearly one in 10 equity release customers are now divorced or separated, with couples going through break-ups releasing up to 13% more than the average amount released by couples – £70,000 in contrast to the £61,700 for married couples*.
The latest Government data shows the only group to record an increase in the divorce rate is women aged 55-plus**.
Straightforward and fair solutions
Analysts say the rise in divorce among women over-55 is partially driven by increased financial independence enabling them to support themselves following divorce while increased longevity is also a factor.
“Equity release enables one partner to remain in the home while allowing property wealth to be shared, and is a growing alternative for settling property issues at divorce,” said Key’s Chief Product Officer, Dean Mirfin.
“It increases the funds available for the other partner to fund a new home and improves their chances of being accepted for a mortgage at a time when finances are stretched. It also enables a home purchase through the ability to release money on the new home as well if needed.
“The rise in divorce among women over-55, despite the overall drop among other age groups, is a sad reality and is reflected in the equity release market. Couples in that age group will in general have more valuable assets to split and more complex finances so there is a need for straightforward and fair solutions which equity release can contribute to.”
*Key analysis of customer database in 2016
Things to consider
Our independent, specialist advisers search the whole market to find the right equity release plan for you. They’ll explain all the options available and that taking a plan reduces the value of your estate and may affect any means-tested benefits you’re eligible for.
You have to get specialist advice before releasing equity; it’s the only way to do it. The initial consultation is free with no obligation to proceed. If you decide to go ahead with an equity release plan our advice fee, usually 1.99% of the amount released, subject to a minimum of £1,499, is payable only on completion.
With a lifetime mortgage, the most popular form of equity release, you’ll still own your home. As with any kind of mortgage, it’s a loan secured against your home. All equity release plans we recommend have a no negative equity guarantee, which means you’ll never owe more than the value of your home.
You should always think carefully before securing a loan against your home.
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