Released equity 'being used for home maintenance'
17th Jul 2012
A significant proportion of people using equity release are utilising the money to put towards home maintenance, a new study has revealed.
The report, carried out by Saga, shows that 56 per cent of those using its equity release advice service spent a proportion of the money to make home improvements.
On average, they release around £10,000 for this, which suggests the money is for more than just a lick of paint and could include major redevelopment.
Andrea Rozario, director general of the Equity Release Council, said that many people in retirement have a fixed income and while they do have savings, these are often seen as being for an emergency.
Therefore, when they need to maintain their home or make improvements, they often look to other sources of funding such as equity release.
Some of these improvements are likely to be age related, so in some circumstances someone installs a stair lift so they can remain in their home longer rather than going into a care home.
"Anecdotally, I would suggest that home improvements which maintain the value of the property such as fixing the roof or changes which make the property more accessible such as fitting bath rails are likely to be the most popular," Ms Rozario added.
Posted by Staff Writer: Ewan Robertson
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