Don’t move. Improve!

Equity Release is attracting more than double the amount of people as it did 5 years ago, with over £3bn of total lending in 2017 – according to the Equity Release Council Spring 2018 Market Report. Michael Hodgetts from Lighthouse Platinum Wealth Management, explains one of the biggest reasons the sector is seeing such record growth.

What are people using Equity Release for?

Along with buying a new car and clearing existing mortgages, home improvements is one of the most common reasons for homeowners over the age of 55 making use of Equity Release.

Many choose to make alterations to make their home their own now the kids have flown the nest, with a new kitchen, garden room or bathrooms being popular choices. Others are using the money they free up to future proof their property ahead of retirement introducing a stair lift, downstairs living quarters, a wet room or better access for a wheelchair.

Downsizing to a more suitable property could be an option, but having to move rather than choosing to might not be so appealing.

You don’t need to move to release money from your home

Equity Release could help you realise some of the wealth tied up in your home- without having to move– and may be a way of providing the funds to make the home improvements you want or need.

A drawdown facility could help provide further funds in the future- with interest only being charged on funds at the time you draw them

Here’s a real life example

Mr & Mrs S. have lived happily in their village surroundings for nearly 20 years and are now in their 70’s.

Not wanting to move home, they needed to make some improvements and alterations to their bungalow to keep it as comfortable and functional as possible.

Their monthly pension income is sufficient to cover general living costs but their savings have gradually been spent over the years and they didn’t now have the spare capital to fund the work they wanted to do.

We met Mr & Mrs S to discuss their options and find out if we could help.

We arranged an Equity Release plan to not only provide the funds required for the initial work, but also with the option of a Drawdown facility allowing Mr & Mrs S access to further funds if required. A year after the initial release, the drawdown facility was used – a simple and easy process with no additional set up costs for the client. Interest is only charged on funds upon release.

Want to see if Equity Release could help give your home a new lease of life? Call Michael Hodgetts on 01473 730999 or visit www.lighthouseplatinum.com to find out more

Equity Release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks of an Equity Release scheme please ask for a personalised illustration. Equity Release may not be right for everyone. It may affect your entitlement to State benefits and will reduce the value of your estate. Check that this mortgage will meet your needs if you want to move or sell your home or want your family to inherit it.

You will need to take independent legal advice before entering an Equity Release arrangement. Lighthouse Platinum Wealth Management Ltd is an appointed representative of Lighthouse Advisory Services Limited which is authorised and regulated by the Financial Conduct Authority.