Equity Release From Your Current Property Can Give You The Cash To Finance Your Dream Home Improvements

Since the financial crisis in the UK, it is no longer possible to obtain mortgage with a loan to value over around 90%. Before the global financial crisis, many thousands of people remortgaged every month in order to release equity from their homes to pay for home improvements or to buy one off items such as a dream holiday or new car. However, in 2011, it is more difficult to agree a remortgage of this kind. One option that is available to you if you are nearing retirement is an 'equity release' scheme, sometimes called a 'lifetime mortgage'. These schemes allow individuals of retirement age to release equity from their home in order to fund home improvements. The idea behind equity release is that a lender takes part of the value of your home in return of the share of the proceeds when you eventually sell the property (often after your death). You can typically take either a monthly income or a lump sum. Normally, these remortgage deals are only available to applicants over the age of 60 but they do mean that you can live in your house indefinitely. Once you have received the money you can use it to pay for a range of improvements. This may be a new kitchen or bathroom, an extension or conservatory or simply installing a new central heating system or boiler. When you retire, jobs around the house may suddenly be more pressing. You may have been delaying home improvements whilst you were working but now have time to undertake all those repairs and other jobs. Your property could be improved by simple jobs such as new windows and doors or new guttering or drainpipes. Home improvements do not always have to be significant or require structural alterations. Raising money through an equity release scheme can also help you redecorate your home. Perhaps you want to replace your carpets, buy new furniture or simply repaint your walls. Having your garden professionally landscaped can also make your property more appealing to potential buyers as well as making the outside area more useful for you and your family. Equity release can be an excellent way of raising the cash that you need to undertake your home improvements. Whilst remortgage rates can vary, it is possible to put a plan in place that will ensure you raise the funds you need whilst not committing you to a high monthly repayment that you may not be able to afford on your pension income. Before taking on any equity release plan it is vital to seek specialist advice to make sure that it is the most appropriate way to finance for home improvements for your needs. It is worth asking your financial advisor to see if there are any state funded alternatives to fund the home improvements that you wish to make. Howard O'Gollegos writes for Just Commercial Mortgages.com the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news. [l]