Can I release equity to renovate my home?
If you are a home-owner aged 55 or over, you may want to make home improvements using some of the equity or value in the property. In fact, home improvement is one of the most popular reasons behind enquiries for equity release.
With Covid19 restrictions and lockdown leading to most people spending far more time in their homes than usual, we have witnessed an increase in these types of equity release enquiries. For example many people want to add office space as remote working has become more common. You may also like our expert tips on home improvements for outside spaces.
What to consider if you want to use equity release to renovate your home
1) Eligibility and suitability for equity release
There is no harm in getting an initial consultation about equity release to see if it is a suitable way to fund your home improvements. In fact, at Access Equity Release, if equity release is not a suitable option for you we can discuss other types of lending that may be more appropriate in your circumstances.
Your equity release adviser will discuss your financial circumstances with you in detail. However, in order to assess your eligibility in the first instance, our client services team will go through some questions with you to see if it is appropriate to have a more in-depth consultation with a qualified equity release adviser. Your equity release adviser will discuss all of the costs involved and guide you through the process. They will ask you how much money you would like to release from the equity in your property and explain the different options including a lump sum, drawdown facilities and different interest options.
2) Choosing a lender
If your Access Equity Release adviser finds that equity release is appropriate to fund your home improvement plans, they will search the market for you to find the best options. Access Equity Release is a member of the Equity Release Council and we are not restricted to a panel of lenders. This gives us the best chance to find the right equity release deal for you. With so many different lenders and such varied terms, it is much better to look at a wide range of lenders. Your adviser will go through your options with you and answer your questions.
3) Discussing equity release with family members
Your equity release adviser will ensure that you fully understand the equity release terms and implications. You may also want to include family members in the process. It is not uncommon for children to have questions for your adviser to ensure that you are making the best financial decision for yourself and also for their future inheritance. Your adviser will recommend specialist advice on inheritance as releasing equity reduces the sale value of the property. The debt is paid off when the homeowner(s) die or move into long-term care.
4) Home improvements to add value to your home
Your renovations may add value to your home and make it more saleable. For example, adding a new room by converting existing space such as a garage or attic can improve the usability and value of a home. If you need more space, adding a new room may be more attractive than looking for a new property and moving house. For homeowners who have struggled to find a new home that they want to purchase, they may decide to release equity in their current property instead to convert their home as they wish.
There is much to consider if you want to release equity from your home to make home improvements. However, as long as the circumstances are right, it can be an ideal solution to improve your home, your living standards and your wellbeing in your home. If you would like to find out more get in touch with our friendly and professional team. There is no obligation and you can make an informed decision.
More questions about equity release? Why not check out our video explainers?
Even better, get in touch with our team to have an initial consultation – no obligation and no cost to you. We’re always happy to answer your questions and have appointments available all over the country – from Devon to Yorkshire.
