How to release tax-free cash to pay for home improvements

Over the past decade the number of people choosing to move home has halved, as many choose to extend their property instead1

After living in your home for a number of years, carrying out home improvements can be all you need to fall in love with your place again.

Home improvements are on the rise

With many of us now choosing to go down the home improvement route, how to pay for it can be another matter. In 2018, more than 22% of people released equity from their home with Age Partnership to fund some form of home improvement, a figure that has continued to rise year-on-year2. These homeowners chose to release some of their property equity to access a lump sum of tax-free cash, which in some cases took as little as eight weeks.

No monthly repayments

One of the main reasons that people decide to release equity is there is no requirement to make monthly repayments if you choose not to. In order to release equity, the youngest homeowner must be at least 55 years of age and your home must be worth at least £70,000. With a lifetime mortgage, the most common type of equity release, you could release from £10,000 up to 55% of the property value, which would be more than enough to cover the cost of some new windows or a conservatory. You can spend the money you release as you wish, once you have paid off any existing standard mortgage that you may have.

Get advice

An independent equity release adviser will explore all options with you, and will tell you everything you need to know about equity release, including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future. At Age Partnership we provide a free equity release quotation outlining what equity release could mean for you. You’re under no obligation to proceed with anything that is recommended to you. Only if you choose to proceed and your case completes would a fee of 1.95% of the amount released be payable (Minimum £1,495).

What's involved

Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. To understand the features and risks, ask for a personalised illustration. Although there are no monthly repayments required with equity release, any money released, plus accrued interest, would be repaid upon death or moving into long-term care. 1Data provided by the BBC. Property Price Advice ‘Need more space? Should you move

house or extend?’ November 2018.

2Source: Age Partnership data. Reasons to release year-on-year. Reasons to release 2018.

Why choose Mail Finance?

Through the Mail Finance equity release Service you will receive award-winning service from the UK’s largest equity release broker, Age Partnership. Through our service you will receive: • Impartial and independent advice • A free quotation, without any obligation to proceed • Your own dedicated adviser to help you along the way • Appointments available over the phone or in the comfort of your own home, whichever you prefer • Exclusive plans and features from leading lenders • Whole-of-market comparison to find a suitable plan for your needs