Bower Retirement has decided to expand with the new offering because of strong demand for “targeted advice as property wealth becomes more important to retirement planning”.
It cited increasing numbers of retired homeowners with homes worth more than £1 million who need more complex advice on property and legal issues.
Andrea Rozario, chief corporate officer at Bower Private Clients, said: “Homeowners increasingly have more wealth tied up in their properties – our analysis shows that around £63 billion has been spent buying £1 million-plus homes without the need for a mortgage in the past five years – and want to be able to access that wealth as part of retirement planning.”
Bower believes the growth in property wealth is “dramatically changing the equity release market while pensions and investments remain under pressure”.
The firm said its analysis showed more than 36,000 £1 million-plus homes have been bought without mortgages in England and Wales in the past five years – more than 85% of those deals were in London and the South East.
It will initially focus on London and the South East.
The company said it has started working with private banks, accountants and law firms after being referred complex cases including typically customers facing interest-only issues.
This also included clients wanting to gift substantial amounts to family for house purchases. Cases have involved clients releasing £1 million-plus.
Ms Rozario said: “The expansion is being driven by clients and their wider range of advisers including private banks, lawyers, accountants and wealth managers who recognise that property wealth can offer a variety of solutions.
“Launching Bower Private Clients is the next logical step to provide a service focused on retirement lending for high net worth clients and we are already seeing strong demand from clients and introducers.”
Specialist underwriting is needed for many high net worth clients, she said, as more expensive properties can be problematic and may need specialist surveys and innovative solutions.