More female homeowners are choosing, according to the latest market research by the Equity Release Solicitors Alliance (ERSA).
The results show that 39% of single people have released equity from their homes this year, compared with 28% in 2005. This contrasts with a fall in the number of couples choosing equity release schemes down 9% from 72% to 61% over the same period.
Equity release schemes almost twice as popular with single women
Equity release was found to be almost twice as popular with women. Out of the single people who released equity this year 64% were female compared with 36% who were male. This gender split has remained roughly the same since 2005.
The average age of a single woman who took out equity release in 2008 was 71, while the average age for men was 70. In 2009 this dropped to 69 for women and 68 for men.
Claire Barker, chairman, ERSA, said: “With the basic state pension for a single person currently at GBP 95.25 per week, it seems there is potentially a case that more single homeowners are opting to take out equity release as an additional means to make their money stretch further. Those who are asset-rich but cash poor can find equity release a solution, especially those in single households who want to retain their independence and stay in their own home.”
ESRA added that with the divorce rate at its highest among the over 60s, equity release may provide a means to support women financially after a decrease in income following divorce.