Over 50s specialist Saga has said that the elderly are turning to equity release in order to improve their homes, rather than move away.
The organisation has found that 38 per cent of over 50s did not want to give up their garden, or close proximity to friends, while 22 per cent feared losing important memories if they moved.
And, it also found that over 3.7 million over 50s in the UK could be planning “significant alteration” to their homes over the next 12 months, with 56 per cent of those using Saga Equity Release Advice Services doing so in order to improve the home.
Saga added that the investment was likely to be more than simple improvement, as the average release figure for upgrade purposes was £10,000.
Nearly half, 47 per cent, are making alterations to modernise the home, while 31 per cent are putting in new kitchens or bathrooms. Other reasons for improvement are to convert a loft, 13 per cent, or building an extension, 10 per cent.
Other reasons for releasing equity include clearing debts, 32 per cent, a new car, 24 per cent, and a holiday, 33%, though at an average of £6,000, the holiday is likely to be a “holiday of a lifetime” rather than a weekend away.
Saga Services chief executive Roger Ramsden said: “While releasing equity from the home isn’t for everyone, it can help people make improvements so they can stay in their home as they get older. This is evident from the one in ten over 50s who are adapting their home to suit their needs as they get older.”
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