Equity release specialist hails ‘exceptional’ results for 2016

Privately-owned Leeds-based equity release specialists Age Partnership Group and Pure Retirement says it will be adding to its 500-strong workforce after posting strong results for the year to December 2016.

Age Partnership, a retirement income and equity release mortgage broker, has increased its turnover to £24.2m from £16.3m in the previous year and profit before tax has risen to £1.85m from £380,000.

Its sister company Pure Retirement, a provider of home loan mortgage contracts servicing the equity release market, has increased its turnover to £15.9m from £8.7m with the operating profit rising to £5.7m from £3.1m in 2015.

During the year, loans originated by Pure Retirement increased by 45% and, in only its second full year of trading, market share is estimated to be around 5%.

The company continues to provide administration services on equity release loan portfolios on behalf of third parties and at the end of 2016 had around 3000 loans under administration, with an initial value of £224m.

On a turnover of £40.1m, the combined EBITDA for Age Partnership and Pure Retirement is £8.1m.

To cater for the increased business, the two companies now employ more than 500 people at its Thorpe Park offices, with further jobs being created.

CEO of Age Partnership, Tim Loy, said: “The success of both companies reflects the growing popularity of the equity release market which, according to Equity Release Council figures, grew by 34% in 2016, breaking through the £2bn barrier for the first time and reaching £2.15bn.

“Attitudes towards equity release are also changing and it is expected that the market will become a part of mainstream retirement planning over the next few years. In addition, house price inflation continues to increase the equity held by over 55s in their property. It is also expected that an increasing proportion of interest-only mortgage customers, coming to the end of their term, will turn to equity release as a means of repayment.

“With increased longevity and generally poor pension provision in the UK there are a number of indicators that suggest the equity release market is set for a period of significant growth.”

Chairman and founder of both companies, Andrew Thirkill, added: “Having established Age Partnership in 2004 there have been a number of positive developments within the retirement market over the past 13 years. In particular the tangible improvement in equity release products, which now benefit from low interest rates and flexible cash drawdown options for the consumer, meaning the consideration of equity release now forms a natural part of people’s retirement planning.

“Having Tim Loy at Age Partnership and Paul Carter, at Pure Retirement, heading up the companies is a major factor in the exceptional progress each has made. Both have a huge amount of experience within the market and, together with their teams, have been able to spot, create opportunities and react quickly to legislation changes, such as the changes in annuities, resulting in exceptional results and an extremely positive outlook for the future.

“I am particularly proud that we have been able to generate so much success and create over 500 full time jobs in my hometown of Leeds.”