All properties need home improvements from time to time. However when you reach retirement age it can be a lot trickier to gain access to the funds you need to pay for them.
While many of us might have ideas about improving our homes in some way, there is a clear distinction between things we’d like to do and things that desperately need doing. The latter group of tasks should always come first on the list. However paying for them, as we’ve seen, isn’t always easy when you are retired and you have limited options with regard to finances.
Looking into equity release
Since there is no restriction on what you can use equity release funds for, you could indeed solve the problem of footing the bill for home improvements via this route. However you should always make sure you are fully aware of how the process works and how much will be due from your estate when you die. This is the point when the amount of equity released, plus interest incurred, will be payable.
How much should you take for home improvements?
If you needed to make improvements to your home you would need to consider how much they would cost. This holds true in every circumstance, regardless of how you would pay for them. You might be tempted to release more equity and to spend it on a luxurious home improvement plan. However it might be prudent to release less and to have more equity to potentially release later on in your retirement if need be. At this stage there could be additional health issues and costs to consider with healthcare. Thus it makes sense to keep a sensible head on your shoulders at all times.
So the first step should be to consider the nature of the home improvements you wish to make. If there is anything that is vitally important you should focus on these elements first. This will enable you to ensure all the necessities are covered. You can then consider whether there are any other home improvements you would like to make that could be funded via equity release.
It might also be a good idea to consider whether you wish to use equity release to provide an income for you going forward. If this is the case you would need to consider how much you would need for that, and potentially adjust your home improvement plans accordingly.
As you can see there is plenty to think about before you make any hard and fast decision here. However it is good to know that many others have already looked into equity release as a firm option when they want to make improvements to
their property. While some will happily downsize to release funds to help them in their retirement, this may not be an option for everyone. Providing the mortgage is paid off in full, equity release might prove to be a good alternative.