In April, the government will offer retired people more flexibility with their pensions by allowing them to withdraw (and spend) their savings in one lump sum. It is expected that a growing number of retirees will shun their pensions in favour of property investment (buy-to-let). With the ability to to unlock a pensions at 55, many may not be able to withstand the lure of attractive rental earnings.
Joe Hobson, one of the property solicitors in our team at Sherrards Solicitors in London, gave his view last week to Waitrose Weekend, explaining some of the reasons for investing in buy-to-let and how to avoid the pitfalls:
“Few investments have had as consistent and significant capital growth as property in recent years. Many of our clients are turning to buy-to-let investment for a dependable income and long term financial security during their retirement. With adequate research, tax planning and legal advice, those intending to invest in property can mitigate the risk involved and increase their chances of a successful return.” (Waitrose Weekend).
However attractive the potential rewards, investing in property does not come without its risks. If you are thinking of investing your retirement savings in buy-to-let property and would like some legal advice, please contact our residential property team in London.