Equity Release for Home Improvements
After spending a good amount of time in your home, you might be thinking about some home improvements to make it more comfortable and enjoyable.
Maybe you’re considering a new kitchen or bathroom, creating a practical loft space for your grandchildren’s visits, or making adjustments to improve mobility as you age. Perhaps it’s time to look at replacing the windows or making your home more energy efficient. Solar panels for instance.
If you’re not quite sure how to turn these ideas into reality, an Equity Release Lifetime Mortgage can present a solution. This basically means tapping into some of the value tied up in your home, giving you the funds you need to bring those long-wished home improvements to life. It’s a way to enhance your living space and overall quality of life without needing to dip into your savings or borrow money using a conventional loan where you are committed to making monthly repayments.
Can you Release Equity from your home for home improvements?
Yes, with an Equity Release Lifetime Mortgage, the money is yours to spend on almost whatever you choose, including home improvements. So, if you want to install a new kitchen, put in new windows to make your home more energy efficient, or create extra room for visitors, equity release can provide the funds.
Most Lifetime Mortgage providers will tell you that using the money from a Lifetime Mortgage for home improvement is consistently shown to be one of the top reasons for taking Equity Release. Not only does it improve the comfort of living in your own home, it can potentially ease the cost of energy bills and add value to the property.
Am I Eligible to take a Lifetime Mortgage?
If you are over 55 and a homeowner then the chances are that you will meet the requirements most providers ask for. The simplest way to find out is to ask. It only takes a few minutes.
We can then assess your circumstances and put you in touch with the most appropriate provider that suits you best. For some providers, health and lifestyle can effect the amount you can release – if you have certain medical conditions, you could release more or achieve a lower interest rate.
What are the pros and cons of releasing equity for home improvements?
Using equity release for extensions or home improvements is a big decision, and before you go ahead you should consider the pros and cons.
The pros of using equity release for home improvements:
– The amount you take is tax free and you can use it in ant way you choose.
– You can stay in your home for as long as you wish, until your death, or permanently move into long term care
– You continue to enjoy any growth in your home’s value
– You retain the right to move to a new property should you wish
– You can choose whether to make any repayments or not.
The cons of using equity release for home improvements:
– Taking a Lifetime Mortgage will reduce the value of your estate and you will have less capital to leave to your beneficiaries. Although this might be a benefit if you are considering IHT planning. You will need to take specialist advice if this is something that is important to you.
– Getting a cash sum may reduce your entitlement to means-tested benefits.
– If you want to pay off your agreement early, you will likely face an early repayment penalty.
– If the value of your home falls, so will your remaining equity. Providers guarantee that you, or your family won’t be put into a position of negative equity.
