If you've lived in your home for some time, there may be changes you want to make to it. Extensions, renovations and repairs can all add ease, space and comfort. Whether you want to convert a loft, fix a leaky roof, or install a stair lift, one way to cover the cost is using equity release. Can you release equity for home improvements?
Yes – with equity release, the money is yours to spend on almost whatever you like. This includes home upgrades such as a new kitchen, triple glazing, or an extra room for guests.
Bear in mind that you will need to meet the eligibility criteria. With most equity release providers, you must be at least 55 with a UK property worth over £70,000.
To pay for home improvements, you could release equity from your property and turn it into tax-free cash. Your age, health and home’s value will affect how much you can release. For example, if you have a medical issue, you may be able to release more or secure a lower interest rate.
Depending on the type of equity release you use, you could receive a lump sum or regular smaller amounts. This money can then be used to cover the cost of your home renovation plans.
The loan is repaid when you pass away or enter long-term care. If you have a joint plan, this is when both of you have died or gone into care. Most people pay off the loan using funds from the sale of their home. Once the loan and accrued interest is paid, any money left over can go to your beneficiaries.
There are two main types of equity release you can use to fund home renovations. Your needs and goals will affect which one will suit you better.
A lifetime mortgage is a loan secured against your home. You can take it as one lump sum or in smaller amounts from a pre-agreed limit with a drawdown lifetime mortgage.
Saga have chosen HUB Financial Solutions Limited to provide Saga Equity Release. The expert service can help you find out if equity release is right for you. Learn more about Saga Equity Release.
A home reversion plan is not available with Saga Equity Release. You sell all or part of your home to a provider and get a cash lump sum or a regular income in return.
Using equity release for home upgrades is a big decision. Before you go ahead, you should think about the pros and cons.
The Equity Release Council was set up to protect people from losing out when using equity release. Providers who are members must ensure you can live in your home until you die or enter care. They also commit to you never owing more than the total sale price of your home. This is even if its value drops when your home is sold after you die or enter long-term care.
Saga Equity Release and HUB Financial Solutions Limited are members of the Equity Release Council. This means you can trust the safety and suitability of our products.
There are other ways to fund work to your home, which might suit you better:
Saga Equity Release can help you find out more about equity release for home upgrades. You can book a chat with an expert or request a callback at a time that suits you.
Chat to an expert and find out if equity release is right for you. Or request a callback at a time that suits you.
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