Home improvements continue to be the most popular use of equity release for Legal & General Home Finance customers, helping those in later life stay in their forever homes.
27 Jul 2023
New data from Legal & General Home Finance shows that home improvements remain the most popular reason for existing customers to release additional funds from a lifetime mortgage (53%)1. Whilst 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.
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 over2. With people living longer, property wealth can provide additional funds to make a home fit for purpose, such as replacing baths with wet rooms. 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: “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.”
1 Legal & General Home Finance data analysing loan and drawdown statistics from July 2023
2 Centre for Ageing Better, Housing | The State of Ageing 2022, March 2022
4Office for National Statistics, UK House Price Index - May 2023, July 2023
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Retail helps create brighter financial futures for all our customers. The division covers the savings, protection and retirement needs of our c.13 million retail policyholders and workplace members.
In 2022, we had total individual annuity sales of £954 million, and issued £632 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 4.9 million members, while our Protection businesses gave peace of mind to more than 6.3 million UK life insurance, 1.8 million group and 1.5 million US customers, taking in £3.1 billion of gross written premiums.
*at 31 Dec 2022