You have a home improvement project you have wanted to get done for quite some time. Unfortunately, you do not have the money to pay for it all. You will be pleasantly surprised to hear that there are many ways to finance your dream renovation project. One option is to use the cash tied up in your home, namely your equity release. Equity release is fancy term used to refer to releasing money from the value of your property, in the form of a lump sum of money or a monthly income. Many people around the UK have taken advantage of rising house prices and have used their equity release to fund home improvement projects. And their retirement, of course. You have the opportunity to move to a cheaper mortgage and cut your monthly repayments. There is no reason why you would not want to release your equity.
Can you really use equity release to fund home improvements?
Yes, you are free to spend the money on whatever you want. You can renovate to add value to your home and you do not even have to take out a loan. If your property is valued at £70,000 or more, you can release equity tied up in your home and spend the money on renovations or decorating, if you like. By releasing equity from your home, you can pay for the installation of a new bathroom or kitchen. If you are healthy enough to enjoy it, you should release money from the value of your home. The choice, however, is completely up to you. No one is forcing you to do anything.
How equity release works
Equity release – lifetime mortgage – is not difficult to understand. When you release money from the value of your home, you agree to take part in an equity release scheme. If the property is your main residence, you can take out a mortgage. You borrow against your home and you pay interest at the end of the loan. This means that the loan amount is paid back when you die or when you enter long-term care. You do not have to move or make any payments while you are alive. The only thing to pay attention to is the fact that the minimum age at which you can take out the mortgage is 55 years.
What to do with the released equity
Once you have unlocked the capital sitting idle in your home, you can proceed with your home renovation project. Do not settle for something like replacing the front door. If you are going to makes changes, you should do something worthwhile. Do not forget that the house will be inherited by your kids. What you can do is install a garden kitchen, make deck and patio additions, transform the attic into a bedroom, and so much more. The possibilities are virtually endless when you have money. You can live comfortably in your home for the following years, so do not miss out on this opportunity.