"Property has been the most rewarding investment and it makes sense for baby boomers to reinvest some of that property wealth"
A quarter of baby boomers are considering equity release to pay for a property makeover, according to SunLife research.
Having already benefited from an average three-fold increase in property values over the last 20 years (£73,469 in 1998 versus £226,756 in 2018), they plan to use equity release to invest in more living space, double glazing or home comforts, adding thousands more to the value of the property.
According to SunLife’s dream shopping basket, an extension, including a loft conversion, would cost £35,000; double glazing would cost around £7,000, and adding a downstairs cloakroom would cost £3,000.
However renovations and extensions could increase property values by more than a third.
Loft conversations adding an extra bedroom and bathroom increase property values by around a fifth, double glazing increases property values as well as improving home security and energy efficiency, and the new toilet could add 5% to the property price.
SunLife's research shows that investing £35,000 could increase property values by £13,000.
SunLife’s equity release director, Simon Stanney, said: “With the average family home tripling in value over the last 20 years, for many, property has been the most rewarding investment and it makes sense for baby boomers to reinvest some of that property wealth, to make home a nicer place to live, while adding to its value.
“Not everyone is eligible or suitable for equity release, but for those who are and who find they haven’t got the funds to afford a home extension or home improvements and adaptations, equity release could be the answer.”