Older homeowners reminded over equity release in 50s homes

Older property owners who bought their homes 50 years ago will have seen a 100-fold increase in their prices, according to Home & Capital.

The equity release firm claims that homeowners who are asset rich and cash poor could raise as much as a six-figure sum through releasing the equity in their homes, especially as those bought in 1957 could be worth as much as 100 times what it was purchased for.

"An average UK property worth around £200,000 today cost less than £2,000 in 1957, so an elderly homeowner who has lived in the same house for their whole life - and there are quite a few of them - would be sitting on £198,000 of equity," said Nigel Hare-Scott, sales director of Home & Capital.

He added that, although most people will have moved home over that time rather than stay in the same property, trading up helps to build up even more equity.

Figures from Alliance and Leicester reveal that the average homeowner over 60 has a home worth £66,000 more than the average UK property price and £265,000 in equity.

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