Until recently, ‘retirement’ for most people meant no longer working at all, but that’s not always the case today. A recent report from Mintel* found that 41% of the people it surveyed expected to work into retirement age. And with our working life representing a key part of our identity, a growing number of us are choosing to keep ourselves physically and mentally active in retirement by setting up – or continuing to run – a business from home.
At Aviva we’ve recognised this growing trend. That’s why we’ve become the first, and only, provider to lend against properties that have an element of personal commercial use, as long as the business takes place in less than 50% of the total land and property and is for the benefit of the borrower or their immediate family only.
Our new approach means that home-business owners don’t need to choose between their enterprise and unlocking the money from their house.
Greg Neilson, MD, Retirement said; ‘We are delighted to be able to introduce this market leading change, giving our customers the option to release equity from their home whilst allowing them to fulfil their home business ambitions at the same time.”
In recent years we’ve received more enquires from people with home-based businesses. These range from customers with a bed & breakfast, starting an online trading business or capitalising on a larger property to run an equestrian facility, cattery or kennels. In fact, statistics from the Office of National Statistics** show that between 2001 and 2016, there was a huge 194% increase in self employment in the 65+ age group - both in full and part time work.
This significant change to our lending criteria is twofold for today’s growing generation of “olderpreneurs”. For those wanting to establish their own home business, equity release could give them a way to access the start-up capital they need. Or for those already using their property commercially, they now have the option to release money from their home, for whatever reason they wish, without compromising their business.
Download our new lending criteria document to find out more.
To help your clients make the most of their property wealth, visit the Equity Release Hub.
*Mintel Later Life Financial Planning, UK, September 2018 Lightspeed/Mintel (p15)
**Office for National Statistics, Trends in self-employment in the UK. Contains public sector information licensed under the Open Government Licence v3.0