Future-proofing. What does it actually mean?
Well, according to the dictionary, to design or change something so that it will continue to be useful in the future.
But what about when it comes to your home?
66% of those who released equity in Q3 2018 reinvested some of those funds in future-proofing their home and garden, according to our latest research*.
Typically, the focus lies on major works with an eye for the future, such as installing a new kitchen or making the bathroom more accessible.
Although, the garden is also usually a top priority for most people.
Landscaping to make the area more manageable in later life is a common alteration, while adapting bedrooms or funding an extension is also popular.
But what does future-proofing mean to you?
Well, essentially, it can mean you can stay in your own home for longer.
By having the essentials and aids already in place for later life, such as a stairlift or a wet room, it opens up the possibility of helping you maintain your independence for a prolonged period.
And, as was shown from our Q3 Market Monitor report, there has been a 19% increase in the number of customers using equity release to make improvements to their home and garden with that in mind – compared to the same time last year.
Equity release may help you maintain a stable financial future, as well as help fund changes that will continue to be useful in the future.
But, of course, equity release is not for everyone. And at Key, we know that. So, if it’s not right for you, we will tell you.
Things to consider
Our independent, specialist advisers search the whole market to find the right equity release plan for you. They’ll explain all the options available and that taking a plan reduces the value of your estate and may affect any means-tested benefits you’re eligible for.
You have to get specialist advice before releasing equity; it’s the only way to do it. The initial consultation is free with no obligation to proceed. If you decide to go ahead with an equity release plan, our advice fee – usually 1.99% of the amount released, subject to a minimum of £1,499 – is payable only on completion.
With a lifetime mortgage; the most popular form of equity release, you’ll still own your home. As with any kind of mortgage, it’s a loan secured against your home. All equity release plans we recommend have a no negative equity guarantee, which means you’ll never owe more than the value of your home.
You should always think carefully before securing a loan against your home.
* Key’s Q3 Market Monitor report
(19% rise = In Q3 2017, 64% of 10,477 plans were used for home and garden improvements. In Q3 2018, 66% of 12,133 plans were used for home and garden improvements. 66% of 12,133 = 8,008. 64% of 10,477 = 6,705. 8,008 = 119% of 6,705.)