How To Use Equity Release To Pay For Home Improvements

Improve the look and feel of your home using an effortless cash injection from equity release

Home improvements can be costly and time-consuming when not having the funds. With an equity release plan, you will be able to get to all the finer details to turn your ordinary house or property into the thing that retirement dreams are made of. 

Listed below are ways to improve your home, live your dreams and find out which equity release lenders to avoid

desktop view of laptop, pens and note paper to consider equity release.

Can I Release Equity To Renovate My Home?

There are no limits to what you can do with your equity release money. 

Whether it is to improve your garden and landscape or add an extension to the interior of your home, you can decide. 

Discussing Equity Release With Family Members

Equity release can affect your family members and the inheritance that you leave them. 

It is advisable to let your children and beneficiaries know that you plan on releasing equity in case you die before the total sum is paid in full. 

That way, they will understand their options before they need to be responsible for them. 

Choosing A Lender To Use Adding Value To Your Home 

You need to consult with a broker and a legal advisor about lenders you would like to use. 

Both the broker and solicitor should be registered with the ERC and have to give you all the information upfront.

Using a private broker could lead to hidden costs. The lenders that they recommend could also lead to higher interest rates. 

Your broker should help you to choose a lender with the lowest interest rate to match the term you plan on taking to repay your equity release, advises Jason Stubbs, who specialises in equity release.

Meeting of 3 people around desk to discuss lifestime mortgages and equity release.

Let’s Look At A Few Things You Could Do When You Are Improving Your Home With An Equity Release

Garden Landscaping

Professional landscapers could assist with giving you the garden of your dreams. From the fencing to the trees, you could have it all. 

You can use the equity release to pay for the gardening and maybe have some cash to play around with the garden yourself. 

You can add to your sustainability by growing your produce in a greenhouse suited for your home with the help of landscaping. 

Adding A Conservatory

With more leisure time available to them, many of our clients choose to enhance their homes by building a conservatory. For many, this can provide a quiet sanctuary where they can enjoy their garden, watch birds and other wildlife, and, hopefully, many hours of sunshine.

Updating Your Home 

Equity release can help you get the kitchen you have always wanted or a bathroom that would suit you better later.

Home automation could make retiring a breeze. Giving yourself the gift of privacy and security could be the one gift you may cherish the most. 

Adding An Extension  

You may want to add an extra room or two when your children or grandchildren visit. 

Guesthouses are standard amongst older couples, and equity release can help you achieve that with your home. 

Help With The Cost Of Running Your Home

Bills can pile up, and your retirement fund may not last as long as you live. 

With the extra money, you can choose to have small instalments paid to yourself or a lump sum that you can draw up a budget with for the future.  

You can eliminate dependency on your children and live your years with peace of mind. 

Older couple on sofa smiling about their lifestime mortgage and equity release decision.

The Next Step 

Now that you have had a look at all the great ways you could improve your home, it’s time to move on to releasing your equity. 

Take the time while you decide on your broker, solicitor, and lender to tie up loose ends. 

Eliminate any smaller debt you may have that can affect your credit score. 

If you cannot repay all your outstanding debt before applying for equity release, pay enough of it to reflect positively on your record. 

You only need to have 6 months left on your outstanding mortgage before applying for equity release so use the time wisely. 

This is a collaborative post

Last Updated on 14th June 2022 by Emma

About Emma

I'm here to help you become confident in making the best money decisions for you and your family. Frugal living has changed my life, let me help you change yours.

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