Whether you decide to release equity in your home largely depends on your individual circumstances. Whether you are looking to increase the size of your pension pot or simply want to make some home improvements, you have a lot of options. We can’t advise you, but we take a closer look at some of those options.

What is equity release?

Equity is the amount of value you own in your home after you have subtracted any borrowings, such as mortgages on your property. Releasing equity from your home, in the simplest terms, means using some of that value in exchange for cash. There are a number of different ways to release equity depending on your needs.

Ways of releasing equity

Re-mortgaging 

If you are interested in borrowing more money against the value of your home to make home improvements or even for debt consolidation, this may be an option. If you use your existing mortgage provider, then you may be eligible for additional borrowing. This allows you to borrow more money with your current mortgage. This means if your mortgage is on a better rate currently, you may end up paying more interest. On the other hand, you may choose to find a new mortgage provider in order to get a better mortgage interest rate. 

Lifetime mortgages

Aimed at homeowners aged 55+, this type of mortgage allows you to borrow a proportion of your home’s equity. You could do this in one or a series of lump sums, while drawdown allows you to take equity as and when you need it. Interest will then be charged on the amount you borrow, which will be repaid when your home is sold. Most mortgage providers will allow you to repay up to 10% each year on the loan amount you borrow as equity from your home. It’s important to check that the scheme you choose comes with a no-negative equity guarantee in case mounting interest exceeds the value of the property in future years.

Home reversion 

Targeted at homeowners aged 60+ this scheme involves selling part of your home to the lender for a lump sum or an agreed income for a percentage of its market value. For example, you may sell 50% of your home for 30% of what it’s worth. While you can carry on living in the home, you will only receive a percentage of the market value for the share of your home you sell to them. This makes this scheme less popular than a lifetime mortgage due to its costly nature. When the home is sold, the revenue from the sale is divided according to the percentage each party owns, which includes any increases in value. 

Could downsizing be a better move?

If you need to fund your retirement and find yourself in a position where you have too much space, downsizing could be a better option. Most people are not best pleased about taking equity out of their homes. It can be a complicated and confusing process, which could erode any inheritance you leave for loved ones. Most people prefer the idea of owning their homes outright. Moving to a smaller, more energy-efficient property could give you a lump sum to fund your future plans without relinquishing any part of your home ownership. 

Discuss your property options with a good agent 

Sometimes properties themselves can hold the key to new opportunities and the solution to a better future. So, whether you want to downsize and use the profit from selling your old property to start a property portfolio, help family get on the ladder or to retire, it’s worth talking to your agent. Maybe you are making home improvements and want to know how much value you can add to your home. Perhaps you have hatched an ingenious plan that could involve letting part of your property to build a nest egg. Whatever your plans are, it's important to seek the right advice.

Your home is your most valuable asset, so your choice of agent shouldn’t be taken lightly. Working with an expert you can trust is crucial to the outcome of your sale, so you’ll need to conduct some research to ensure your decision is well-informed.

Here are the key indicators of a good agent:

Local presence and experience

A reliable agent will be experienced in selling properties similar to yours and well-versed in the intricacies of your local market. Make sure they can provide you with local insights such as trends, values, and any potential changes. You’ll often find that reputable businesses have a visceral local presence, with ‘SOLD’ boards all around and a comprehensive website full of details about the community.

Integrity

An accurate valuation is the key to a successful sale, so you’ll need an agent with a solid and reliable strategy. Some agents will offer up an unrealistic figure to get you on board, which often results in the home languishing on the market or failing to secure a buyer at all. A good agent will thoroughly assess your home, considering a multitude of factors such as recent sales data, the condition and appearance, and current market demand.
They can use this information to paint a full and accurate picture, ensuring that your property is competitively priced.

A solid marketing strategy

While the market remains competitive, a robust marketing strategy is what will set your sale in motion. It’s important to inquire about your potential agent’s approach to marketing, including both online and offline channels, professional photography, and any special strategies they might use to showcase your home in its best light.

First impressions

Your agent’s style of communication should be apparent from the first meeting. It’s important to set clear expectations on how you hope to be contacted if you work together. Whether it’s emails, phone calls or face-to-face meetings, the right agent will maintain an effective and consistent line of communication from the offset.

Glowing reviews

Reputable businesses are proud of their client testimonials, so it shouldn’t be difficult to find glowing reviews on the website. Customer feedback is the valuable insight you’ll need to get a gauge of the agent’s reputation, so don’t hesitate to do your research first.

How do they handle negotiations?

Having a strong negotiator on your side is crucial when it comes to selling a home. You should ask any potential agents about their approach to negotiations as well as their strategy for securing the best possible deal for you while also maintaining a positive relationship with potential buyers.

Obtaining a FENSA Certificate is crucial when it comes to buying or selling a property. But what exactly is a FENSA Certificate, and why is it so important? In this article, we take a look at everything you need to know about them, from what they are to how they impact the selling and buying process.

What is FENSA?

The Fenestration Self-Assessment Scheme (FENSA) regulates the replacement of windows and doors in residential properties. It was established by the government in 2002 when building regulations were amended for double-glazing.

What is a FENSA Certificate?

A FENSA Certificate verifies that a FENSA-registered supplier installed all windows, doors, roofs, and skylights in accordance with building regulations. This verification eliminates the need for local building authorities to inspect the work to ensure that it meets the necessary regulations.

Why do you need a FENSA Certificate?

Without a FENSA Certificate, you are at risk of paying for a service that does not satisfy safety and quality standards. Failure to comply with certain regulations may even result in fines and legal issues.
A FENSA Certificate also ensures that the windows and doors installed in your home meet the required energy efficiency standards, which can help to regulate the temperature inside your home and reduce your energy bills.

How to get a FENSA Certificate

Using a FENSA-registered supplier is the easiest way to ensure you obtain a certificate. These professionals are certified to carry out installations that comply with building regulations.
After the work is complete, the installer may arrange an inspection to verify that the installation adheres to building regulations. They will then send the required paperwork to FENSA, who will issue you the certificate.

How FENSA Certificates affect the selling process

When selling a property, having a valid FENSA Certificate for any replacement windows and doors is essential. It gives any potential buyers peace of mind that the property is safe and secure, which could increase their likelihood of making an offer.
While it is not a legal requirement to have a FENSA Certificate when selling a property, buyers are increasingly savvy when it comes to property purchases. Their solicitor is likely to request to see the certificate before contracts are exchanged, so failing to have one could cause a sale to fall through.

How FENSA Certificates affect the buying process

On the flip side, when you are buying a property, it is important to check whether there is a valid FENSA Certificate for any replacement windows and doors. This will ensure that the property is compliant with building regulations and that there are no issues with the installation.
If a property does not have a FENSA Certificate for replacement windows and doors, this should raise red flags for you as a potential buyer. Your solicitor might scrutinise the quality of the installations, seek further details, or even request replacements to adhere to building regulations.

Whether you're a long-time homeowner or you’re thinking about selling, keeping energy costs low not only saves you money but can also increase the appeal of your home to potential buyers.

Here are some practical tips to help you save on energy bills and enhance the overall energy efficiency of your home.

Unplug your devices

‘Phantom electricity’ is the energy that your electronics consume while they’re on turned off, but still plugged in. While unplugging might seem like an unnecessary measure, phantom power is estimated to account for almost a quarter of an average energy bill! *

Unplug your devices and appliances at night or before you leave the house, and you’ll notice the benefits when your next energy bill comes in.

Draught-proof windows and doors

Unless your home is brand-new, it’s easy for heat to escape through draughts around windows and doors, gaps in the floor, or through the chimney. Professional draught-proofing is a fairly affordable investment which will certainly save you money in the long run. However, if you’re happy carrying out a few DIY tasks, you can still see great results from DIY draught-proofing. Methods include:

• Self-adhesive foam strips for windows
• Letterbox flaps and brushes
• Chimney draught-excluders
• Flexible fillers for floorboards

Install a smart meter

A smart meter can help you both monitor and reduce the energy you’re using at home. They offer real-time data on energy usage and costs and send readings automatically to your supplier, meaning there’s no need for estimated bills.

Some smart metres also have settings that can reduce energy consumption when the house is empty or during peak hours.

Invest in insulation

One of the most effective ways to reduce your energy bills is by improving your home’s insulation. Poorly insulated homes lose a significant amount of heat through the walls, roof, and floors. While there is an upfront cost, the long-term savings on heating bills can be substantial, and the improved Energy Performance Certificate (EPC) rating could make your property more attractive to buyers. 

Loft insulation is quick and easy to install, and the benefits are endless. It’s estimated that a quarter of heat is lost through the roof of an uninsulated home, and if installed correctly, lost insulation should pay for itself many times over its 40-year lifespan. *

Upgrade your boiler

An old, inefficient boiler can be a significant drain on your energy resources. Modern condensing boilers are much more energy-efficient and can save you hundreds of pounds a year in heating costs. If your boiler is more than 10 years old, it might be worth considering an upgrade. Some homeowners may also qualify for grants or subsidies to help with the cost of a new boiler, so it’s worth exploring your options.

Consider an energy supplier switch

Don’t just accept the energy tariff you’re currently on – shopping around could save you a lot of money. Use comparison websites to check if there are better deals available and consider switching to a fixed-rate tariff to protect yourself against future price hikes. Many energy companies also offer green energy tariffs, which could align with your sustainability goal and make your home more appealing to eco-minded buyers.

Energy saving trust*