The home you love
A home you love often carries some of your most cherished memories. And it’s not uncommon to want to stay in those surroundings for as long as possible.
However, while your home can bring you happiness and joy, you’ll also want it to be suitable for your wants and needs – both for now, and in the future.
And as you get older, you may find your needs change. Whether that’s requiring more space for when the family visit, updates and upgrades to keep you busy and entertained during your newly found free time or making everyday tasks a little easier by installing a few helpful aids; whatever it is, you want your home to be able to accommodate.
And when you’ve put so much time and energy over the years into creating a home you love, you’ll also want to enjoy it to the fullest during your retirement.
Stay in your home longer by future proofing
By modifying your home in preparation for the future, you might be able to stay in the place you love for longer.
Additions such as a stairlift or more suitable access points, an installation of a wetroom or a more accessible kitchen, or even landscaping your garden to make it easier to manage; these are all examples of alterations you can make to help adapt your property to your changing needs.
But then there’s the question of funding it. It’s all very well knowing what changes you need to make, but finding the money to do so in later life can be tricky.
It’s always worth speaking to agencies such as Citizens Advice Bureau or contacting your local council first before starting major work, as you may be entitled to financial assistance.
But if that’s a non-starter, you could always look towards some of the funds already tied up in your property. And if you did so, you wouldn’t be alone.
Use equity release to make home improvements
Equity release is a way to unlock some of the money that’s tied up in the value of your home.
It’s a flexible financial solution that can be tailored to your needs, including no monthly repayments unless you choose to make them, retaining full ownership of your property and allowing you to still leave an inheritance with some plans.
According to recent data, more than 60 per cent of people* who took out equity release spend some of their tax-free money on making home improvements – including future proofing their property.
Using a lifetime mortgage to future proof your home
A lifetime mortgage, the most popular form of equity release, is a loan secured against your home. It can give you a tax-free cash lump sum or access to smaller increments as and when you need it following an initial lump sum release – known as a drawdown plan.
With a lifetime mortgage, the most popular form of equity release, you retain full ownership of your property, have no monthly repayments to make and stay in the home you love for the remainder of your retirement – all in the knowledge that you’ll never owe more than your home’s value through the no negative equity guarantee. Typically the plan ends when the last remaining applicant either passes away or moves into long-term care. And with some plans, you can protect a percentage of your home’s value as an inheritance if you wish.
Benefits of a lifetime mortgage
- Use some of the tax-free cash locked in the value of your home to make home improvements
- Typically, no monthly repayments unless you choose to make them
- You retain full ownership of your home and can stay in it for as long as you like
- You can access the money when you need it through a drawdown plan after an initial release
- You can still leave an inheritance if you wish with some plans
- You’ll never owe more than the value of your home
See how much you could release
See how much tax-free cash you could unlock from the value of your home with our free equity release calculator.
Using a home reversion plan to future proof your home
Another equity release option is a home reversion plan. Like a lifetime mortgage, a home reversion plan gives you access to tax-free funds tied up in the value of your property – giving you access to the cash you need for home improvements.
There are also no monthly repayments to make, and you can stay in your home for as long as you wish.
However, with a home reversion plan, you sell part or all of your property to a reversion company for a cash lump sum. That means you’re no longer the owner.
Although, as it’s a sale and not a loan, there’s no interest added to the amount you receive, so you always know the percentage of your property’s value you can pass on as an inheritance.
But it’s worth pointing out that you won’t receive the true market value for the percentage of your property you sell to the reversion company.
Benefits of a home reversion plan
- Receive a tax-free cash lump sum to make home improvements
- No monthly repayments
- No interest added, as it’s not a loan
- Can stay in the property for as long as you wish
- You can still leave an inheritance by only selling part of the property
Here to help you find the right option
Equity release, like any big financial decision, is one you should think about carefully before going ahead. You need to ensure it’s the right option for your circumstances.
We understand equity release isn’t for everyone. Which is why we’re here to help. We can give you the expert advice you need to make your decision and we’ll never recommend equity release unless we’re certain it’s the right option for you.
We also don’t charge for our services unless you choose to go ahead. That means you can find out if equity release is the right financial solution for your needs without facing any fees.
See how much you could release
Start your journey and see how much you could release from the value of your home with no obligation to go ahead by using our quick and easy equity release calculator.
Things to consider
- With a lifetime mortgage, there are typically no monthly repayments to make, as the loan plus roll up interest is repaid when the plan comes to an end.
- Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits.
- Unless you decide to go ahead, our service is completely free of charge as our usual advice fee of 1.5% of the amount released would only be payable on completion of a plan, subject to a minimum advice fee of £695.
- Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home.
- Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefuly selected panel of providers.
* Key's 2020 Market Monitor