Many mature people live in homes which require improvement or updating but they do not have the necessary funds available to make changes.

Replacement windows, complete redecoration, new kitchen, replacement bathroom, adding a conservatory, replace roof, guttering, new carpets and curtains, etc are all typical examples of such requirements. In fact almost anything needed for the home or even the garden.

So how can releasing equity help?

Funds can be raised against the home but no repayments need be made until death or permanent long term care. Consequently, the works can be completed with no reduction of existing capital or income. The amount available depends on age (55+) and state of health. The interest outstanding does increase over time and will have to be repaid, with the capital, as stated above. This would reduce any inheritance from the estate, so, particularly where children are involved, the potential beneficiaries should be made aware of this. Generally, children are quite happy for their parents to live in comfort during their later years so have no objections to mum and dad setting up an Equity Release arrangement to make their home a comfortable place in which to live. There is an option to pass all the details to children, if required.

To find out more about how equity release could be used for home improvements, as well as any other way you wish, contact us