Retirement Advantage has launched a new equity release product aimed at high net worth individuals. Prestige Options are available on UK properties valued up to £6 million.

According to Retirement Advantage, the product will give these property owners the opportunity to release a sizeable cash lump sum in order to boost their retirement finances.

The new Prestige Options product provides customers with a one-off cash payment. Because the interest is added to the loan, customers will not have to make any monthly payments.

Alice Watson, head of product and marketing at Retirement Advantage Equity Release, said: “Having received many enquiries from homeowners in high value properties, we believe now is the time to offer a product specifically suited to their needs. These homeowners can now raise cash lump sums of up to £2 million from their property value, and the Prestige Options product means they do not need to make monthly payments.

“The launch of this product is further evidence of our commitment to supporting as many property owners as we can. It follows our unique range of buy-to-let mortgages for older landlords introduced last year.”

Retirement Advantage’s Prestige Options product is available to property owners aged 60 and above with properties worth a maximum of £6 million. The minimum loan amount is £250,000, and properties valued above £6 million will be reviewed on a case by case basis. The annualised interest rate (AER) is 5.29%.

The product also has the option of a cash reserve facility for an additional 0.2% on a customer’s monthly interest rate. Prestige Options are covered by a range of Equity Release Council safeguards including a No Negative Equity guarantee, and the right to remain in the property.

Watson added: “Owners of high value properties are sitting on substantial stores of wealth which could make a significant contribution to their retirement planning, alongside pensions and other assets. Having the option to use property wealth in this way makes perfect sense and our product will offer property owners much greater flexibility. This product has also been designed in response to the growing number of clients who intend to use their property to gift funds to their children as part of an intergenerational wealth transfer.

“As equity release continues to grow, product providers must continue to innovate and evolve products to suit the widest possible range of property owners. We are now better placed than ever to help homeowners tap into property as well as other assets to live the retirement they want.”