Home improvements in an Equity Release property

GillianD

Hi, my Mum did Equity release on her property some years ago and now, she has been granted several home improvements paid for government grants through the local council as energy saving eg solar panels roof insultation and ventilation and heat pump installation and radiators. 
This should add some value to the property. Does it affect how the equity release works as the property will be worth more than it would have been with these measures?

DullGreyGuy

GillianD said:

Hi, my Mum did Equity release on her property some years ago and now, she has been granted several home improvements paid for government grants through the local council as energy saving eg solar panels roof insultation and ventilation and heat pump installation and radiators. 
This should add some value to the property. Does it affect how the equity release works as the property will be worth more than it would have been with these measures?

In what way do you think it may?

It won't impact the current agreement whilst she is living in the property. If it's a standard non-repayment agreement until either her death or moving permanently into care then the only impact would be what the home could contribute to repayment when it ends. If it's relatively modern it'll likely be capped at the property value so they may get more back and/or you may get some residual value back. If its an older uncapped then it'll contribute more to the repayment but the estate may be left with debt to repay. 

sheramber

She needs to advise the equity release company of her plans.

Herzlos

The equity release is presumably for a fixed figure + interest, so having the value of the house go up won't impact how much they'd claim when sold but should make it a safer bet for them.

If in doubt, check with them. 

sheramber

Herzlos said:

The equity release is presumably for a fixed figure + interest, so having the value of the house go up won't impact how much they'd claim when sold but should make it a safer bet for them.

If in doubt, check with them. 

Not necessarily.  If no payments have been made the debt will be increasing  due to interest  being added. 

theartfullodger

What does the equity release agreement say about such changes?  Can't read it from here. That's where the answer will be.

My brother did equity release.  IMHO from a bunch of blood sucking cheats.  Other views are available.

Best wishes to all.