L&G: property wealth allows people to stay in their ‘forever homes’

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New data from Legal & General Home Finance indicates that home improvements remain the most popular reason for existing customers to release additional funds from a lifetime mortgage (53%).

While some of the funds are used to increase homes’ long-term efficiency, such as installing insulation or double glazing, for other customers, the funds are essential for adapting their homes to meet their later-life accessibility needs. This allows them to stay in their ‘forever’ homes, instead of moving to a new property or going into care, L&G says.

Research from the Centre for Ageing Better shows that there are one million homes across the UK that need adaptations to become a suitable place for those who live there, with a third of these people being aged 55 and over. With people living longer, property wealth can provide additional funds to make a home fit for purpose, such as replacing baths with wet rooms, L&G says.

According to the latest home adaptations English Housing Survey by the Ministry of Housing, Communities & Local Government, a shower replacing a bath is needed in 18% of homes that require adaptations3.Family support remains a priority, and applications from new Legal & General customers indicate that people continue to release equity from the homes to gift to their loved ones (17%).

Craig Brown, CEO, 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.

“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.”

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