Research from Economic Lifestyle has revealed that nearly ten per cent of retired UK homeowners are considering living abroad, which could be the equivalent of over 800,000 people.
The retirement housing and finance company believes that this shift towards foreign property investment has been fuelled by the boom in the UK housing market over the past decade, allowing for more equity release from older residents' assets.
Economic Lifestyle's research suggests that 328,000 retired people would look to release over £30,000 from each of their homes' equity to finance an overseas purchase.
The company's managing director, Mark Neal, said: "The development of the equity release market, which saw retired homeowners release £1.1 billion from their homes during 2005, will fuel the number of retired homeowners buying properties abroad.
"The growing number and range of equity release products is making this easier to do," he continued, "and it will be a contributing factor behind the estimated 1.88 million Britons aged 55 and over who could be living abroad within four years."
A property in the UK valued at £500,000 could release equity in the range of £200,000.
With the average value of British-owned property in two of the most popular destinations, France and Spain, under £110,000, industry commentators say the attractiveness of equity release schemes is clear.To find out more on property, click here.
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