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Equity release advice for property investors

May 26, 2017

Equity Release advice for property investors from Optimise Accountants

By Louise Misiewicz

Are you a property investor considering retirement?

Have you considered how to utilise equity release?

A number of my property investment clients I have been speaking to this month are nearing retirement, and the subject of equity release is a pertinent one to raise on the blog, as I’ve been advising on it.

As leading property tax experts, my team and I are currently giving a number of buy-to-let landlords tips on how to release equity from their property portfolios to gain the maximum benefit for their retirement.

Equity release is growing in popularity across the UK as more and more property investors aged 55 and over look to access some of the wealth tied up in their successful property portfolios – after all, as house values have increased, so has the amount of equity tied up in property portfolios for landlords.

When considering equity release from a property portfolio, there are a few basic considerations, and I thought it would be worth highlighting these here. There are also some compelling benefits, too.

What are the benefits of equity release for landlords?

There are a number of benefits for home owners when considering equity release, including:

  1. Gain access to tax-free cash. With a lifetime mortgage, for example, you can release small amounts starting from £10,000 tax-free initially, and leave funds in reserve for when you need it. You retain full ownership of your property.
  2. Become mortgage repayment free. Using equity release, you could reduce your monthly outgoings by clearing remaining mortgage balances. This means that your property portfolio is giving you a bigger financial return with less outgoings.
  3. Use it to help your family. Releasing equity from your property portfolio could allow you to gift an early inheritance to your children. Equity Release can also be used as part of an inheritance tax strategy, reducing the inheritance tax paid on your properties.
  4. Be more financially secure. Releasing equity from your portfolio could make a big difference to your daily life, by helping with food, bills and other living expenses.
  5. Fund your perfect retirement. Why not use some of the money you release from equity to have an amazing holiday, or to make a purchase such as a new car.
  6. Fund home improvements. With the funds release from your property portfolio you could make home improvements, such as putting in a conservatory, installing a new kitchen, landscaping the garden or extending your main home.

Are you unsure of how to release equity in your portfolio?

I would add that equity release within a property portfolio needs to be done with due diligence and care, ensuring that the long-term profitability of the portfolio isn’t negatively impacted.

Speaking to a financial advisor will go a long way to ensuring that any equity released is done so appropriately for you.

I’ve written the following article covering more information on inheritance tax, which will also provide useful background information as it was raised in the above benefits around equity release:

How to reduce inheritance tax in 2017

How to engage with us

If you want to understand how to implement the elements raised in this article or to discuss other finance/tax questions then please book some time with us using the below calendar.

Please use the redeem code “Article 33” to get 33% off your next consultation call.

If you are looking for a new accountant, then please book some time with us using the below calendar.

Please note that this booking is to describe our services and will not be used to discuss your personal tax affairs.



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Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk