Property owners releasing equity to fund improvements

By Natasha Adamson

Just under a half of property owners who take out an equity release mortgage do so to fund home improvements or modifications according to new research from LV=.

In equity release mortgages the borrower only pays the monthly interest on the loan and never acquires the equity in the property back. Upon their death the property is sold to pay back the loan amount and remainder monies go into the borrower's estate. According to the new research, the top 3 motives for taking out an equity release mortgage are:

  1.  48 per cent - Home modifications or improvements
  2.  15 per cent - Topping up retirement income
  3.  10 per cent - Helping family members

For the majority of people, the largest asset they will have when they retire is their property. Historically this was viewed as being their inheritance to pass on to their family, but increasingly people are viewing it as their means to help fund their retirement. For some that means downsizing - selling their property and purchasing a smaller house, and others will turn to equity release mortgages.

If you are buying, selling or remortgaging a property in Northern Ireland, contact one of the conveyancing solicitors at Wilson Nesbitt for legal advice and information by calling 0800 840 9290.

Alternatively, you can submit your details for a callback by clicking here.

 

 

 

(Image rights reserved by Images_of_Money)


(Image rights reserved by Images_of_Money)