Typical Client Types
There are two broad categories of equity release clients. Those who want equity release to maintain their lifestyle and comfort during retirement, and those who need to release equity from their homes in order to supplement their income in retirement. Some clients may view releasing equity as a way of reducing their Inheritance Tax liability although proportionally these are likely to be a small group.
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Clients looking to maintain their lifestyle
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Characteristics
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Reasons for choosing equity release
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Pragmatic by nature and financially aware
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Non-essential property improvements |
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Love their home life and don’t want to move
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Holidays |
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Main criteria is value for money
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Alternative to downsizing |
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Tend to have a progressive outlook
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Release funds for children / grandchildren |
Purchase may take longer as have less
immediate need for funds
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Clients looking to supplement their retirement income
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Characteristics
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Reasons for choosing equity release
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Concerned about finances
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Supplement everyday spending |
May feel uncomfortable about releasing equity
but have little alternative
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Vital property repairs |
Keen to ensure they secure sufficient
funds to meet their income needs
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Debt consolidation |
Shorter purchase process due to
greater immediate need for funds
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Health requirements not covered by NHS |
Source: Prudential Research