Equity release plans help people access and enjoy the benefits of some the wealth they have accumulated over a lifetime of hard work. Some people chose to use this money to increase the amount of money they have to spend on a daily basis, and opt for the cash to be given to them in installments. Others decide to receive the money in a lump sum and spend it on something big – a new car or a holiday, for example – but these are not the most common uses the money is put to.
Equity release industry analysts estimate that as many as two thirds of the people who choose to access money from the value of their property do so in order to fund a home improvement project.
As well as helping to make the home a more comfortable and convenient place in which to live, such home improvement projects often also have the further benefit of actually adding to the value of the property, thereby helping to offset the eventual cost of the equity release plan.
Here are some of the most common alterations that people choose to make to their home with the aid of cash release via a lifetime mortgage or home reversion plan.
Inevitably, retirement means spending more time at home. It is only natural then that this is the time when many people decide to make more of their property, and one of the best ways of doing that is to get a house extension.
Not only does a house extension increase the amount of living space in your home, but it can also provide a room with its own unique function. Whether this space is used a hobby room or an extra living room – somewhere to enjoy life and relax – or it is put to a more practical purpose like a laundry room – thereby freeing up more space elsewhere – the potential benefits of a house extension are numerous. Another type of house extension that can add value and pleasure to your home is a conservatory. Attractive, light and relatively simple to have installed, conservatories are a very popular choice with many retired homeowners.
Only those who are over 55 are eligible for an equity release plan, and so it is inevitable that many of the home improvement projects that people use the cash they access are intended to increase the accessibility and livability of the property for an elderly person. This can mean many different kinds of home improvement. For some people, a new kitchen with improved accessibility of cupboards and draws is essential. Another common home alteration is a garage conversion. Many people feel that this space can be put to better use as an extra room, especially if getting upstairs is becoming more difficult, and a ground floor bedroom is needed.
Energy saving measures
Another common project for people who have accessed money via an equity release scheme is to improve the home’s heating and hot water provision, as well as taking steps to conserve energy in the process.
A new condensing boiler, with greatly improved efficiency, or double glazing windows and doors, or even something more adventurous like getting solar PV panels installed, are all effective means of making the home more comfortable – and affordable – on a day to day basis.