A SunLife research has revealed that a quarter of baby boomers are considering equity release to pay for a property makeover. They have 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) and are now planning to use equity release to invest in more living space, double glazing or home comforts, adding thousands more to the value of the property.

SunLife’s dream shopping basket suggests that an extension, including a loft conversion, would cost £35,000; double glazing would cost approximately £7,000; and the addition of a downstairs cloakroom would cost £3,000. However, even though it looks expensive to conduct a makeover, long-term renovations and extensions could increase property values by more than a third.

For example, loft conversions that add an extra bedroom and bathroom increase property value by around a fifth, while double glazing increases property values and improves home security and energy efficiency and a new toilet could add 5% to the property price.

According to SunLife’s research, investing £35,000 in a property makeover could result in an increased property value of £13,000.

“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,” said SunLife’s equity release director, Simon Stanney.

“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,” he concluded.