An equity release finance specialist is launching a new national business that will work closely alongside estate agents.
Key Retirement Solutions has unveiled a national house buying and selling service for the ‘worried’ over-55s.
The hand-holding service is aimed at people who are likely to be downsizing, and will be charging 2.5% of the property’s selling price, with a fee of £299 paid upfront. While the fee is undoubtedly hefty compared with a normal estate agent’s fee, the service aims to take away all hassle and includes help with finding the next property and negotiating on its purchase price.
The price also includes valuation help, independent help with finding the right estate agent, all negotiations following offers, and estate agency and conveyancing fees, as well as a property finding service for the next home.
Key says that the service – a significant expansion and a major departure for its own business – is being launched after its own research showed that 78% of older people are worried about the home buying and selling process.
The same research showed that 18% of over-55s are considering downsizing, and need to raise £78,000 from the sale – usually to relieve their own financial worries, or to give to their children. Nearly one in five say that the running costs of their present home are too high, while 3% have interest-only mortgages with no ability to repay the loan unless they sell up.
Unsurprisingly, getting the best sale price for their home is a worry for many older people, although the fear factor of moving home is their biggest concern – for 60% of those coming up to, or past, retirement.
The research, carried out among just over 1,000 older people, showed strong demand for the launch: 59% of those questioned said they would be interested in finding out about a service which can handle the entire buying and selling process for them.
Key Retirement has appointed Vic Pegna, previously of Countrywide and Your Move, to head up the new initiative.
Pegna said: “A number of our customers [inquiring about equity release] would like to move but are daunted by it. Most of our customers have been in their house for 20 years or more.
“If the house is costing too much to run, then it will still be too expensive even after equity release, so the best option would be to downsize.”
Dean Mirfin, group director at Key, said: “The launch of Keymove Property Services is the logical next step for the Key Retirement Solutions, and builds on our expertise and experience in equity release and annuities and estate planning.
“We regularly advise customers not to proceed with equity release as their real preference is to look at downsizing as an alternative, and Keymove Property Services offers comprehensive advice and help.
“There is huge demand for downsizing, with nearly one in five, or around a million people, planning to do so in the next five years.
“But there are real fears about moving house and the problems involved, which is not surprising considering many older people will not have moved for years. The risks of getting it wrong or losing money are real too, as it is a decision they will literally have to live with.”
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Comments
rant: mais oui, mon brave - I am now 'back to the coalface' as an Estate Agent... and loving every second of it!
Methinks that 'SE Agent' got his/her wires crossed before the initial and subsequent posts - I read it that he/she thinks YOU are an Agent also [...don't be too upset by that, matey - I also reckon you have a secret yearning in that direction... ;o) ] and therefore is missing the true emphasis of your point.
Again, I would suggest that the 'statistics' quoted in the original article are both unreliable and irrelevant. Lets face it - 200,000 downsizers a year is hardly going to flood the market (all selling properties at a tad above the "average" price/size - just what the doctor ordered!) BUT their downward purchasing activities potentially takes a chunk out of the middle tier that 2nd/3rd timers would normally jump at - so it could make the market "interesting" in the coming years, methinks...
Come on, SE Agent - re-engage with my mate rant on the same playing field this time!
Good to see you here again PeeBee - missed your sensible contributions to these articles and ability to cut through any MDT.
I've no doubt your assesment of the main purpose of the article is correct. I'm more concerned though with an EA who is seemingly unaware of the affect that supply and demand has on the housing market and house prices.
Is it true that you've stepped back over to the EA side btw?
rant - with regard to the statistics you quote, methinks that the article author wanted to justify the "need" for this ridiculous service.
The "worried" vendors we are talking about here have navigated their way through the seas of life for five or more decades. I doubt that they "need" (or WANT, for that matter...) their handies held - especially not by some spotty-faced oik who left uni a fortnight ago and is now an "experienced property professional".
"The research, carried out among just over 1,000 older people, showed strong demand for the launch: 59% of those questioned said they would be interested in finding out about a service which can handle the entire buying and selling process for them."
So - the "research" carried out revealed ABSOLUTELY NOTHING then! "Interest in finding out more" is NOT a business plan that someone should rely on.
Especially not when their local Agents already do what the tin says at significantly less cost.
From the article: "There is huge demand for downsizing, with nearly one in five, or around a million people, planning to do so IN THE NEXT FIVE YEARS."
From your post: "as we have seen", ie, in the years before the timeframe that the article is talking about, the period when many Boomers have not yet been looking to downsize and flooding the market with their properties.
So, to quote from a familiar tune: " You aint seen nothing yet". Why do you assume the next five years will be the same as the previous, when the demographics involved are vastly different?
You seem to think that in five years' time the Boomers' kids will all be in secure, well-paid jobs and will be allowed to borrow an extra £78k to bung their parents' generation.
You also seem to believe that a nominal valuation given by an estate agent can immediately be counted as cash in the bank. To be fair, large chunks of the UK population behave the same too. But it is demonstrably not true.
Because as we have seen prices, have not collapsed dropped but not collapsed and I doubt many have only exactly 78K!!!
"they have a problem to fund 78K, but they can as they can sell their property"
Which is why I made the point about pent-up supply. This age-group is a demographic bulge. If many of them look to downsize in a short time frame, what makes you think they are all going to be getting their free £78k?
rantnrave, not sure you understood the story, they have a problem to fund 78K, but they can as they can sell their property and not be a drain on anyone else. If its worth 2.5% of your profit, now thats another issue.
So... hang on a minute... this company is offering a "special" service for homeowners who are worried about the daunting prospect of selling their hommes and want their hands held along the way.
Hmmm... they've been beaten to it, I'm afraid.
BY ESTATE AGENTS!
Typical - polish up a t*rd (thanks again for that one, Jonnie...) and call it "new and innovative" - and charge the unsuspecting through the nose for the privilege of getting NOTHING EXTRA...
"A smell a green eyed monster below!"
Because I want £78k's worth of financial worries??
A smell a green eyed monster below!
Mind you, me too if you can get those fees!!!
"The same research showed that 18% of over-55s are considering downsizing, and need to raise £78,000 from the sale – usually to relieve their own financial worries... Most of our customers have been in their house for 20 years or more."
So they bought their houses at a much cheaper salary multiple than they go for today, and need to find £78,000? There are a lot of MEW'd up Boomers out there, looking for other people to pick up their debts.
"There is huge demand for downsizing, with nearly one in five, or around a million people, planning to do so in the next five years."
AKA pent-up supply.