Nearly twice as many Brits be­lieve ex­tend­ing their prop­erty is a bet­ter fi­nan­cial de­ci­sion than mov­ing to a new house.

Scottish Daily Mail - - Mail Finance -

After liv­ing in your home for a num­ber of years, car­ry­ing out home im­prove­ments can be all you need to fall in love with it again. In 2013, just three per cent of home­own­ers de­cided to im­prove their ex­ist­ing home in­stead of mov­ing. That fig­ure rose to 15 per cent in 2018. But with many of us choos­ing the home im­prove­ment route, how to pay for it can be another mat­ter. Ac­cord­ing to Age Part­ner­ship, in 2018, more than 22 per cent of peo­ple who re­leased eq­uity from their homes used the funds to pay for home im­prove­ments. These home­own­ers chose to re­lease some of their prop­erty eq­uity to ac­cess a lump-sum of tax-free cash, within as lit­tle as eight weeks in some cases. But fund­ing your home im­prove­ments through eq­uity re­lease isn’t nec­es­sar­ily the right so­lu­tion for ev­ery­one.

No monthly re­pay­ments re­quired

One of the main rea­sons that peo­ple choose the route of re­leas­ing eq­uity is that there is no re­quire­ment to make monthly re­pay­ments if you don’t want to. This can free up even more dis­pos­able in­come to spend on get­ting your home just how you would like it. With a life­time mort­gage, the most com­mon type of eq­uity re­lease, you could re­lease from £10,000 up to 55 per cent of your prop­erty value. This 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.

Seek ad­vice

Ex­pert ad­vis­ers 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. Through the Mail Fi­nance Eq­uity Re­lease Ser­vice you will be pro­vided with a free 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 per cent 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. Money re­leased, plus ac­crued in­ter­est, would be re­paid upon death, or mov­ing into long-term care.

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