Equity Release for Home Improvements – An Overview

Are you looking to fund home improvements but don’t want to sell your property or take out a traditional mortgage? Equity release may be the solution you’re looking for. Equity release is a way for homeowners to access the money tied up in their property without having to sell it or move out. It’s a popular choice for those looking to make improvements to their homes, as it allows them to access the funds they need without having to sell their property or take out a traditional mortgage.

Page last updated – 11th February 2023

Checked for accuracy by:

Chris - Equity Release Editor

What is Equity Release?

Equity release is a type of loan that allows you to access the money tied up in your property without having to sell it. The loan is secured against your property, so you’ll need to pay it back when you sell the property or pass away. There are two main types of equity release: lifetime mortgages and home reversion plans.

Lifetime Mortgages

Lifetime mortgages are the most popular type of equity release. With a lifetime mortgage, you take out a loan against the value of your property, which is then repaid when you sell the property or pass away. The amount you can borrow depends on the value of your property and your age, and the interest on the loan will accumulate over time.

Home Reversion Plans

Home reversion plans are a less common form of equity release. With a home reversion plan, you sell a portion of your property in exchange for a lump sum of money or a regular income. When you sell the property, you’ll receive the remaining value, minus the portion you sold to the equity release provider.

Using Equity Release for Home Improvements

One of the most popular reasons for taking out equity release is to fund home improvements.

Whether you’re looking to make your home more comfortable or add value to it, especially on a property in London, equity release can provide the funds you need to make the improvements you want.

Here are some of the benefits of using equity release for home improvements:

  • Access to funds: Equity release provides access to the money tied up in your property, allowing you to make the improvements you want without having to sell your home or take out a traditional mortgage.
  • No monthly repayments: With equity release, there are no monthly repayments, so you don’t have to worry about repaying the loan while you’re still living in your home.
  • No impact on your credit score: Equity release doesn’t impact your credit score, so you don’t have to worry about your credit rating being affected if you take out a loan.
  • Tax-free cash: The money you receive from equity release is tax-free, so you don’t have to worry about paying taxes on the loan.

Home improvement projects can range from small cosmetic updates to large-scale renovations. Some of the most popular home improvement projects include:

Kitchen remodel: A kitchen remodel can range from a simple cosmetic update to a full-scale renovation. This can include new countertops, cabinets, flooring, lighting, and appliances.

Bathroom remodel: A bathroom remodel can include new fixtures, tiles, flooring, lighting, and countertops. This can improve the look, feel, and functionality of your bathroom.

Adding a room: Adding a room to your home can provide additional living space and can add value to your home. This can include a new bedroom, family room, or home office.

Landscaping: Landscaping can improve the look and feel of your outdoor space. This can include adding new plants, trees, shrubs, and flowers, as well as hardscaping features such as patios, walkways, and retaining walls.

Painting: Painting the interior or exterior of your home can be a quick and easy way to update its look and feel. You can choose from a wide range of colors and finishes to match your style and preferences.

New flooring: Installing new flooring can update the look and feel of your home. Popular options include hardwood flooring, tile, carpet, and laminate.

Windows and doors: Upgrading your windows and doors can improve the energy efficiency of your home, as well as its appearance. This can include replacing old, drafty windows and doors with new, energy-efficient models.

These are just a few of the many types of popular home improvement projects that homeowners use equity release for. Whatever your goals and budget, there are many home improvement options available that can help you achieve the look, feel, and functionality you want in your home.

Equity Release For Conservatories

Whether you are taking out equity release in Yorkshire or London, conservatories are one of the most popular home improvements people opt.

A conservatory is an extension of the living space that provides a bright and airy space for homeowners to enjoy the garden and outdoor views, even during inclement weather. Not only do conservatories add an extra living space to the property, but they can also add value to the home actually increasing the equity.

There are a variety of conservatory styles to choose from, such as Victorian, Edwardian, Lean-to, and P-shaped, to name a few. The choice of style often depends on the existing architecture of the property, the homeowner’s personal preferences, and the size and shape of the garden.

When using equity release to fund a conservatory, it’s important to ensure that the contractor and all materials used are of high quality. This is because, as with any home improvement, the quality of the work will impact the overall value of the property. It’s also a good idea to check that the conservatory meets all building regulations, such as planning permission and building control approval, before work commences.

Choosing the Right Equity Release Provider

When it comes to choosing an equity release provider, it’s important to do your research and pick a reputable provider with a strong track record. Look for a provider that offers a range of equity release products, so you can find the best one to suit your needs. You should also look for a provider that’s a member of the Equity Release Council, as this ensures that they abide by strict standards and offer high-quality products.

It’s also important to get professional advice from an Equity Release Council-approved adviser. They can help you understand the implications and risks of equity release, and ensure that you make an informed decision about whether it’s the right choice for you.

If you would like to find out how much money you might be able to get you can use our free equity release calculator. No personal details are required to use it so you don’t have to worry about anybody calling you.

In conclusion.

Equity release can be a great way to fund home improvements, providing you with access to the funds you need without having to sell your home or take out a traditional mortgage. Just make sure you choose a reputable equity release provider and get professional equity release advice to ensure that you make the right choice.