Most people who take out equity release, our adviser tracker research has shown, do so to clear themselves of lingering debt and mortgage repayments that they do not wish to carry with them into later life.
However, over the years we have heard about and come across some more unusual reasons people have chosen to tap into their housing wealth.
Using equity release to fund extravagance and luxury is not something we would advocate because there are often more pressing reasons to use housing wealth. As a responsible and honest company, we advise one in 10 of our customers that equity release is not right for them for various reasons.
Nevertheless, it is refreshing to see that the products and plans we in the industry advise upon can help people realise dreams that they may have felt would remain in the realm of fantasy.
One of our customers took out a lifetime mortgage in which the funds released were being put towards a £100,000 pilot training course for the customer’s nephew. Now it’s likely that once qualified the nephew would be extremely grateful to his family for the early inheritance received and the fact that it set him on a career path that would secure his future would have brought great satisfaction to the client.
Another memorable case revolved around the purchasing of a £500,000 yacht, a lifelong dream which was realised without having to sell up the much loved home. One remarkable case resulted in the client taking out equity release to purchase a top of the line prosthetic leg, the benefits of which I am sure they would argue, have made life much easier.
There have been cases ranging from cosmetic surgery for longed-for breast augmentation, to the purchase of a camper van by a festival-going pensioner. Replacement teeth (rotten due to 30-years consumption of fizzy drinks) to life-changing gender reassignment surgery have also been reasons for releasing equity.
There have even been reports of equity release used to pay for weddings in Thailand for those wishing to live out their days in matrimonial bliss. The cash locked away in the homes of the over 55s can be transferred into fulfilling some truly fascinating ambitions and, in many cases, can enhance the lives of customers no end.
Prudent purchases and decisions are still the bedrock of what equity release can provide and are what we advise our clients to consider before taking into account more grandiose options.
It’s essential they understand the impact of their decisions on future choices and recognise that there may be more pressing needs in the future. Whilst the more unusual reasons people have tapped into their housing wealth may seem reckless to some, it is very rare. It is important to remember that this is the customer’s decision and although we have a responsibility to advise our clients to consider the modest, sometimes the bold is what they deserve. Our prudent advice is there but the choice must ultimately be the customers.
Andrea Rozario is chief corporate officer for Bower Retirement Services.
