Buy-to-let landlords in the UK over the age of 55 could be entitled to almost £50 billion via equity release, Retirement Advantage estimate.
Research combined the most recent average house price with its own equity release calculator to determine that £47 billion could be available to over-55 buy-to-let landlords by means of equity release.
“Property remains an important element of a diversified investment portfolio, which explains why so many over-55s still choose to become landlords,” Alice Watson, head of marketing at Retirement Advantage Equity Release, explained.
“Tapping into property wealth won’t be right for every buy-to-let landlord, but the best way to find out is to adopt a holistic approach to finances and have an open conversation with a financial adviser,” she said.
The insurance company used publicly accessible data to gauge the number of buy-to-let properties in the UK owned by over-55s, which is the minimum age eligible for equity release.
Often used for servicing other debts, home improvements and gifting to family and friends, equity release could potentially offer a financial boost when the buy-to-let sector no longer features mortgage relief.
If a proportion of landlords embraced equity release, it could lead to money being freed up to ‘support and enhance their retirement’, Watson believes.
Watson continued: “Equity release can allow older landlords to raise capital without effecting their surplus income, and to borrow against properties at an age that few mainstream mortgage lenders would consider.”
She added: “We have spoken to advisers who believe that equity release for buy-to-let will particularly appeal to landlords with portfolios who want to make the most of their investments as their circumstances change later in life.”