Home improvements remain the most popular reason for existing customers to release additional funds from a lifetime mortgage, Legal & General Home Finance reports.
While some of the funds were used to increase homes’ long-term efficiency, such as installing insulation or double-glazing, for other customers the funds were used to adapt their homes to meet later life accessibility needs.
Research from the Centre for Ageing Better showed that there are one million homes across the UK that need adaptations, with a third of people living in them being aged 55 and over.
According to the English Housing Survey by the Ministry of Housing, Communities & Local Government, a shower replacing a bath was needed in 18% of homes that required adaptations.
Family support also remained a priority, and applications from new Legal & General customers indicated that people continue to release equity from the homes to gift to their loved ones (17%).
Craig Brown, CEO of Legal & General Home Finance, said: “Property wealth can be a valuable asset for those who are considering covering more expensive home adaptations and want to increase the quality of their life.
“Our research found that home improvements continue to be the most popular use of equity release among our existing customers, helping those in later life stay in their forever homes.
“Using the loan value to help loved ones also remains a priority, with older generations wanting to pass on their wealth to financially support those who are starting their higher education journeys or are yet to get on the property ladder.”
He added: “At Legal & General, we are always listening and taking on board adviser and customer feedback, looking at ways that our products can change to reflect needs in today’s environment.
“It’s important to note that equity release is a lifelong financial commitment and won’t be suitable for everyone.
“Those considering applying for a lifetime mortgage must speak to a qualified financial adviser to be clear about all the options available to them.”
