Transforming Your Home With Equity Release

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Enjoy your retirement in the home of your dreams

The tax-free cash you release from your home can be used to complete the renovations that could transform your house into your dream home. Enjoy the retirement you deserve in the house you’ve always imagined.

What’s more, making the right renovations and additions can add value back into your property.

Spring is upon us, and with the optimism that the warmer weather brings many look to make home improvements. Whether it is making the garden ready for the languid longer days of summer or investing in the kitchen as the heart of the family home, this is a popular time for DIY. In fact, recent data indicates a five-fold increase in the number of households opting for home improvements over moving to a new house.1

For those in later life however, the need for home renovations may have a more practical goal. As you approach retirement, you may be considering how you can make your home more comfortable and accommodating for you and your family.

Unfortunately, whether it’s adding an additional downstairs bathroom, or adding practical living space in the loft to accommodate friends and family, these improvements can prove costly. Retirement is a time usually associated with reduced incomes. These financial concerns may prompt some to consider putting their grand design ambitions on-hold.

Your secret savings?
Recent data published by Nationwide indicates that the average price of a home in the UK reached £211,756 in January 2018, an annual increase of 3.2%.2 Thanks to these price rises, your home could be primed to work as your secret later-life savings fund.

If you are an over-55 UK homeowner, then there is a way for you to use the value of your home to help you realise your renovation dreams.

By investing responsibly in your home, through regular mortgage payments for example, you could be in possession of a considerable asset. The value of this asset need not remain dormant. Thanks to modern, regulated equity release products, you could enjoy access to your property wealth. Your equity can be used to fund your retirement ambitions, including transforming your house into your dream home.

How does equity release work?

With a lifetime mortgage, the UK’s most popular equity release product, you could enjoy regulated access to a considerable portion of your home’s wealth. By replacing your existing mortgage with a lifetime mortgage, your later-life budget could benefit from a significant tax-free boost. You will have no required monthly payments to make and could enjoy the benefits of fixed interest rates for life: you can be provided with accurate projections of the costs.

With a lifetime mortgage provided by a lender approved by the Equity Release Council you and your partner retain full ownership of your home for life, or until you enter long-term care. You can never owe more than the value of your home either, thanks to the no negative equity guarantee. This means that when the mortgage is repaid – usually through the sale of your property – you cannot ever pass on lifetime mortgage debt to your heirs.

There are numerous plans available, some of which allow you to create an interest-free reserve of equity, that you can draw on in the future, only as and when you need it. The benefit of this type of lifetime mortgage – called a Drawdown lifetime mortgage – is two-fold: not only can it help offset the build-up of interest (you only ever pay interest on the equity you actually release), but it also means that you know that you have ready access to capital for those lightbulb moments you may have in the future.

Adding value to your property

Not only can you add comfort and practicality into your home with the tax-free cash you release, but savvy investments in the right renovations could even add value to your property. The benefit of this, of course, is that it helps offset the impact of the equity release.

Here are just a few of the ways you could use the equity you release with a lifetime mortgage to transform your house into your dream home:

1) Build a conservatory
The right conservatory can add practical – and profitable – style and space to anyone’s house. Be sure to choose a design that complements the style of your home, and try to avoid letting it take over too much of the garden. Choosing the right features – such as double-glazing – can also go a long way to making this extension of your home more comfortable for you and your family, and more cost-effective in the long run.

2) Redo the kitchen
For many, the kitchen is the family hub, the heart of the home. Investing in this room can give a lift to the value and comfort of any property.
There are myriad ways to alter your kitchen, the only real limits are your imagination and budget. Keep it neutral and practical to add value, but don’t be afraid to let your character shine through in the features; it’s your kitchen, make sure it’s a space you want to be in.

3) Add a bathroom
In terms of adding convenience and comfort to you in later life, an additional bathroom can make the world of difference. Investing in comfort and style – a deluxe new bath, underfloor heating, even features as seemingly innocuous as taps and towel rails – can help add a sense of luxury to your home, and help you enjoy a piece of well-deserved rest and relaxation in your own home.

4) Give the garden a facelift
A well-designed and attractive garden can add significant value to your home, as well as providing you with quality space for recreation and relaxation.
The addition of stylish decking can significantly alter the perception of the amount of living space in your property, as well as providing your home with another social hub to be enjoyed with friends and family: after all, who doesn’t enjoy a BBQ in the heady days of the Great British summer?

5) Expand upwards
Utilising the space above your heads with a loft conversion can be one of the most expensive options in terms of initial outlay.
However, the addition in terms of practical living space – you could have the space for a bathroom and bedroom up there – means that the return in terms of value added to your house make this a sensible investment. What’s more, the new rooms could provide you with the space you need to welcome family and friends.

The tax-free cash of a lifetime mortgage could help you realise your home renovation dreams. Your golden years should be spent in a home you love. Why not find out today if a lifetime mortgage could help you transform your house into your dream home?

Could equity release help you? Call us now and speak to one of our expert team who will give you all the information you need.

0800 652 2955


1 Independent, ‘Number of homeowners carrying out home improvements rather than moving
increases five-fold, study finds’, 19/03/18
2 The Guardian, ‘Surprise rise in UK house prices as lack of homes for sale fuels lift’, 01/02/2018
A Lifetime Mortgage may reduce the value of your estate and affect your entitlement to means tested state benefits. To understand the features and risks, ask for a personalised illustration. Responsible Equity Release is a trading style of Responsible Life Limited. Only if your case completes will Responsible Life Limited charge an advice fee, currently £1,295.

Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490. A lifetime mortgage may affect the value of your estate and your entitlement to means-tested state benefits. Our adviser will talk you through this and the setting up costs before you make any decision to proceed.


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