A significant proportion of homeowners are releasing equity from their property in order to fund home improvements, according to a new survey.
In a poll conducted by Bridgewater Equity Release, home improvements were cited by 43 per cent of respondents as the reason they were investing in a home reversion plan. In fact, ftadviser.com reports it was the most commonly cited reason – even proving more popular than supplementing a pension or repaying a mortgage.
Some of these respondents could be using the cash released in order to expand their house via the addition of a loft conversion or a conservatory. Extensions such as these boost the value of a home quite significantly, with many homeowners choosing to add high quality furniture or conservatory blinds.
Commenting on the results, Bridgwater Equity Release’s head of sales, Peter Welch, was far from surprised that homeowners were using home reversion plans to fund smaller projects than in years gone by.
He told myintroducer.com: “As can be seen from the reasons given by customers, there are a whole manner of ways customers are using their accessed equity to fund smaller purchases, improvements to their homes or to have funds available should an emergency arise.
“Flexibility is absolutely key here and this data goes some way to proving that releasing a smaller amount of equity is compatible with funding lifestyle choices.”