Use your property wealth to improve your home
Homeowners are using their property wealth to make home improvements
An Englishman or woman’s home is their castle, and for the majority of us is our biggest asset. And when we find a ‘castle’ where we want to stay put for the rest of our lives we take great pride in getting it just how we like it. With house prices continuing to rise over the last four years1, albeit at a slower rate than previously, research by Compare the Market2 shows that six out of ten homeowners are opting to make home improvements rather than purchasing a new home. Getting your dream home through a new purchase, or by making home improvements could be a big financial commitment for most. When you are approaching retirement, your financial options may also be limited. With a lifetime mortgage, the most popular form of equity release, homeowners aged 55 plus could access some of the money tied up in their home without having to sell it or move out. The Equity Release Council2 has reported record numbers of homeowners releasing money from their home as part of their retirement planning, as more and more over 55s developed an appetite for unlocking their housing wealth. Multi-award winning equity release specialist Age Partnership found that a large proportion of their customers who chose to release tax-free money spent it on making home improvements. Did you know that by making improvements to your home you are likely to increase the value of your home? This is great news, because with a lifetime mortgage you also continue to own 100% of your home meaning you could benefit from any future price increase. You will however have to be mindful of the rate of interest rates on your lifetime mortgage and the impact that this can have.
Seek expert advice today
If you are considering releasing the cash from your home, it is best for you to get in touch with an equity release specialist such as Age Partnership. Their qualified advisors will be able to tell you everything you need to know about equity release and if it is right for you, 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. 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. We provide initial advice for free and without obligation. 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). Equity release requires paying off any outstanding mortgage. Equity released, plus accrued interest to be repaid upon death, or moving into long-term care.