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

During lockdown, 85% of people across the UK have decided to tackle home improvements1

We have all spent far longer staring at our own four walls over the past 100-plus days than we ever have before. It is therefore perhaps not surprising that 85% of UK residents have chosen now as a good time to carry out home improvements and spruce up their living space. If you’ve decided to invest in a brighter home, the key question is how to pay for it. In the past 3 months from April to June, more that one in four of those who released equity through Age Partnership used the money to carry out some form of home improvement, a figure that has remained constant across the year. No monthly repayments One of the main reasons that people decide to release equity is that there is no requirement to make monthly repayments if you choose not to. In order to release equity, the youngest homeowner must be aged 55 or older 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. What's more, you continue to own 100 per cent of your home. 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 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. The UK's largest equity release broker, Age Partnership, provides 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 typical fee of 2.25% of the amount released be payable (minimum £1,695). 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 equity release does not require you to make monthly repayments, any money equity release, any money released, plus accrued interest, would be repaid upon death or moving into long-term care.