The latest research from over-50s specialists SunLife has revealed that home improvements are the most common equity release spend.

Life Well Spent, which surveyed 2,000 people over 50, can reveal how those who have released equity are spending their money – and how those who haven’t would spend it if they did.

Overall, around one in 20 people eligible to take out equity release have done so, while a further one in eight (15%) would consider it.

Typically, equity release allows homeowners to release between 20 and 60% of the value of their home, and SunLife’s survey found that the average amount of equity released by survey respondents was £50,514.

Those who have not taken out equity release, but would consider it, say they would choose to release £88,143, and that their top priorities would be holidays – more than half (53%) claim this is what they’d spend the cash on – home improvements (47%) and early retirement (27%).

But when it comes to what those who have released equity actually do, the priorities are somewhat different. Top is actually home improvements – 39% of those who have taken out equity release spent it on home improvements, at an average cost of £11,100.

Next is mortgage and debt repayment – a third have done this, spending £18,441 on average – while a third (31%) spent the money on holidays or travel (£6,500 on average). And while more than one in four think they’d use the money to fund an early retirement, just one in eight (13%) actually have.

According to SunLife’s research, one in eight over 50s who have released equity from their own homes did so specifically to financially support their loved ones, while a further one in 10 would consider it.

The study found that 12% of over 50s who have released equity did so to provide financial support to family – giving them £12,525 on average – while 13% released equity in order to give cash gifts to family – £4,043 on average.

Of those who have not released equity – but would consider it – 10% would use the money to financially support family – planning to give £38,808 on average, while 15% would use the money to give a gift – of £20,600 on average.

Of those that have released equity from their home, three quarters (75%) said it had improved their overall happiness, including more than half who said releasing equity significantly improved their happiness.