Whether you already have an equity release plan or are thinking about unlocking some of your property wealth to enjoy a cash boost, either way it makes sense to keep your home in the best condition possible.
For those of us with a plan in place already, making home and garden improvements has long been a popular way in which we like to spend our tax-free cash. And for good reason, too.
The higher the value of our homes, the greater the equity still available. That means a larger fund will be available to tap into in the future should we wish to unlock more cash, or it can be left there to provide a bigger inheritance for our loved ones in the future.
For those considering a lifetime mortgage, making improvements to your home now – before a plan is agreed – could increase your property value. The more equity you have in your property, the larger the fund available to unlock; you may even be able to access a better rate on your plan due to the improved loan to value (LTV).
If you are thinking about updating your home, you might want to consider one of these…
Popular ways to add value to a property
Adding a bedroom
Whether you carry out a loft conversion (a popular option for those with grandchildren who come to stay) or perhaps build out over your garage, however you create an additional bedroom for your home this is one of the top ways to add real value to your home.
Building an extension
From the addition of an extra room downstairs, to two-storey extensions that add rooms to both levels of your home, this is usually the most expensive way to add value to your home but if done well and in keeping with the rest of your property then the return can be well worth the effort.
Updating your kitchen
Your kitchen is often the focal point of your home and is where you will do most of your entertaining. A new kitchen can cost around £8,000 but according to consumer watchdog Which?* the update will add around 6% to the value your property.
Putting in a new bathroom
Bringing your dated bathroom back to life with a new suite, flooring and tiling will transform the room and can add decent value to your home. If you have a separate toilet next door to your bathroom then consider knocking down to create one larger, open space. Adding an en-suite is also a great way to add value and will be incredibly handy too!
Adding a conservatory
The addition of a conservatory to your home will give you plenty of extra space in which to relax and enjoy your garden all year round, and it is sure to increase your property value. If it is under a certain size then you do not need planning permission, and even a small conservatory could add around 5% to your property price.
If you are over 55 and considering equity release as a way to fund home improvements, or to unlock your money to spend in any way you choose, then speaking to a specialist in retirement lending is crucial.
With the lowest rates ever now available and a wide range of flexible options coming to the market, a specialist will work to find the most competitive plans for your needs.
During your free, no-obligation initial consultation a specialist will also take the time to explain the advantages and disadvantages of each type of plan, including how equity release will reduce the amount of inheritance you leave.
Speak to a retirement lending specialist today by calling free phone [tel].
*Thisismoney.co.uk March 2015