One of the most popular uses of a lifetime mortgage is to release funds to undertake home improvements. In fact, 40% of clients releasing equity use it for this purpose.
Reinvest funds in the home
Whilst you are taking money out of your house, you are effectively reinvesting the money back into it and ultimately improving it’s resale value. A conservatory is a cost effective solution to add some extra space and enjoy the garden aspect. With funds needed of around £12-15k depending on size, this is a great way to enjoy your home even more. By taking smaller lump sums of up to £20,000 the loan to value is generally kept low and this way you can secure the lower rates in the market.
Projections will demonstrate the house will ‘earn’ back the loan amount over time with the increase in house values. Let’s face it a £20k home improvement will not dent the equity, as in 10-20 years the house price will have hopefully increased. Of course, house prices can go down as well, but generally we all agree that the housing market is a reasonable bet on long term investment.
Modernise Your Home
Other key areas in the home are bathrooms and kitchens that need modernisation and releasing funds from your home, means that you can undertake these home improvements and enjoy the benefits they will bring you.
Flexible Repayment Options
Plus, you have no repayments to make, so interest applied will roll up and compound. You can have the flexibility to make repayments if you so choose. We advise clients if they have reasonable levels of disposable income to consider sourcing unsecured interest free home improvement loans as an alternative way to fund their chosen project. However, clients often feedback that the repayment levels are too high to service and they prefer the flexibility a lifetime mortgage provides.
Some of our clients are single, and in some cases have no family to leave an inheritance to, so their priority is to fully enjoy their home and make some major investments in home improvement projects, so they often look at the maximum release they can take to get their home just as they wanted it and benefit from it throughout their retirement.
So if you are considering some projects and need funds to undertake these, why not have a chat with us and see if this a route that may well suit your needs? It is without obligation and our initial advice is free. Book a call today.
