Home improvements are on the rise
With many households spending much more time than usual their homes over the last year, it’s no surprise people are deciding to make home improvements.
However, how to pay for it can be another matter.
More than 26 percent of people released equity from their homes with Age Partnership in 2020 to fund some form of home improvement, a figure that has increased in recent years1.
By releasing some of their property equity, these homeowners were able to access a lump sum of tax-free cash, in some cases in as little as eight weeks.
No monthly repayments
One of the main reason that people decide to release equity is that there are no requirements to make monthly repayments if you choose not to.
With a lifetime mortgage, the most popular type of equity release, you can release from a minimum of £10,000 up to 58 percent of your property’s value – more than enough to make some much-anticipated home improvements.
What’s more, you continue to own 100 percent of your home and you can enjoy spending the money once you have paid off any existing mortgage you may have.
In order to release equity, the youngest homeowner must be at aged at least 55 years and your home must be worth at least £70,000.
Find out how much you could release
In order to release equity, the youngest homeowner must be at least 55 years of age and your home must be worth at least £70,000.
Whilst it’s true that equity release can eat into an inheritance, you can also ring-fence a portion of the equity in your property so that it’s protected. This is known as an “inheritance protection guarantee”.
As part of the UK’s No 1 equity release broker*, Age Partnership, can provide you with a free equity release quotation outlining what equity release could mean for you. You’re under no obligation to proceed with anything that is recommended to you.
Age Partnership will tell you everything you need to know about the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.
Only if you choose to proceed and your case completes would a typical fee of £1,795 be payable.
What’s involved?
Equity release may involve a home reversion plan or a lifetime mortgage, which is secured against your property. To understand the features and risks, ask for a personalised illustration.
Although there are no monthly repayments required with equity release, any money released, plus accrued interest, would be repaid upon death or moving into long-term care.
Source: Age Partnership data. Reasons to release year on year. Reasons to release 2020.
* Based on the volume of plans from a panel of lenders Q1 2021 – Q3 2021
Touchstone data, no. of equity release plans 2018 – Q3 2020
Correct at time of publication. The Express Equity Release service is provided by Age Partnership Limited, 2200 Century Way, Thorpe Park, Leeds LS15 8ZB. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Age Partnership Limited is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432 and is trading as Age Partnership. We offer a comprehensive range of equity release products from across the market.
