Homeowners opting for renovation over relocation

If you’ve lived in your home for a number of years, you might feel like it’s time for a change. Maybe you’re dreaming of a bigger kitchen, an ensuite or new outdoor space.

While moving home is an option, it can be an emotional, stressful and expensive process. This is why many homeowners are opting to renovate rather than relocate.

However, how to pay for it can be another matter. According to data from Age Partnership, home improvements were the second biggest reason why homeowners decided to unlock the equity from m their homes in 2022.

Equity release provides a way to access some of the money locked d up in your home without having to move or downsize. The money that you u release is tax-free, and you have e the option of not making any repayments if you choose not to, because the loan plus the interest rest accrued is repaid when you pass ass away or move into long-term care.

If you have an existing mortgage, gage, you will need to use some of the money that you release to repay this, but the remaining money is s yours to enjoy spending.

You will need to take advice before going ahead with equity release and your adviser will discuss alternative options with you, such as if you’ve considered downsizing. They can also provide you with a personalised illustration to explain the features and risks of equity release. Equity release may involve a home reversion or a lifetime mortgage, which is secured against your property. With the most popular form of equity release, a lifetime mortgage, you still continue to own ow 100 per cent of your home and will benefit from future ho house-price rises.