Equity release can be a superb way for homeowners over the age of 55 to boost their finances and there are many ways that this money can be used. Interestingly, it seems that most people use equity release as a way to make improvements to their home and garden and this can certainly be a smart way to improve your property, particularly if you add value.
More Than Half Making Home Improvements
Equity release experts Key Advice analysed their data to see how people were using equity release and found that 64% of people were using it as a way to improve their home and garden. This is double the amount than the second reason, which was to go on holiday (32%). Other reasons that people used equity release included paying debt (30%), treating or helping family and friends (22%) and clearing an outstanding mortgage (23%).
When people use equity release to make improvements to their property, it gives them the chance to both improve their living space and add value to the property. There are all kinds of different improvements that people could make that would make a huge difference to both their life and the value of their home.
An extension is one of the most common home improvement projects as a way for people to extend their living space. This can be favourable to moving and there are many uses for an extension, such as a home office, spare bedroom, home gym or conservatory.
Kitchen & Bathroom Upgrades
Kitchen and bathroom remodelling or upgrades are also common projects financed by equity release. These are areas of the home that can become worn and dated over time, so improving these areas can revitalize the home as well as make it more attractive to potential buyers (a smart way to add value).
There are many other home improvement projects that people can complete with equity release. These include landscaping the garden to improve your outdoor space, converting a loft into a useable living space or decorating the entire home to breathe new life into the property.
Using Equity Release
Equity release is a terrific way to fund home improvement projects, but it is still a major financial decision and not one that should be made lightly. You should always use an equity release calculator and speak with a specialist to see if this is the right move for you and consider all of the important factors.
Many homeowners over the age of 55 turn to equity release to bolster their finances and it is evident that more than half of people use this to make improvements to their home. This can be a smart way to finance various different home improvement projects, particularly when you are completing work that can boost the value of your home.