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.

When preparing your home for sale, lighting is often an overlooked but crucial factor. Good lighting can completely transform the look and feel of your space, making it appear brighter, larger, and more inviting. 

Here’s how to get your home’s lighting just right, ensuring that it looks its best to potential buyers.

Maximise natural light

Natural lighting is one of your home’s most valuable assets, and buyers will notice when there’s a lack of it. Make the most out of the daylight hours by cleaning your windows to allow as much light as possible to enter, using light curtains and blinds, and trimming outside foliage to prevent blocked sunlight.

Layer your lighting

Layered lighting involves using different light sources to create balance and depth in a room. Ambient lighting is the base, usually sourced through ceiling fixtures and standing lamps. Start by making sure your ambient lighting is bright enough to fill the room, but not overpowering.

Then you can layer with task lighting and accent lighting. While task lighting serves specific purposes such as illuminating cupboards and counters, accent lighting is purely for aesthetics. Finding the right balance of all three will create a space that feels warm and inviting, while also letting buyers know that your home’s design is well thought-out.

Choose the right bulbs

Not all light bulbs are created equal. The type and colour of light bulbs you choose can dramatically affect the atmosphere of your home. LED bulbs in particular are a great choice as they are energy efficient, last longer, and provide bright, even lighting that buyers will appreciate.

Highlight key features

Lighting can be used to draw attention to your home’s best features. For example, you could use accent lighting to highlight a feature wall, fireplace or art piece. If you have a kitchen island or breakfast bar, consider installing pendant lights above it to add style and enhance functionality. 

Use mirrors to reflect light

Strategically placed mirrors can help amplify the light in your home, making rooms appear brighter and more spacious. Hanging a large mirror on the wall opposite a window will reflect natural light around the room, which creates a visual illusion of a more expansive space. This trick is especially effective in small rooms and tight spaces like hallways and bathrooms.

Pay attention to outdoor lighting

The exterior of your home is the first thing buyers will see, so make sure it’s well-lit and noticeable to onlookers. Consider installing a warm, inviting light above or beside the front door to create a welcoming and inviting entrance.

Adding solar lights or low-level lighting along pathways, driveways, or garden features is another great way to enhance your kerb appeal while also improving safety. 

Consider smart lighting

In today’s tech-savvy world, smart lighting systems are becoming increasingly popular with buyers. These systems allow for control of lighting via a smartphone or voice commands, adding convenience and a modern touch. 

Set lights to turn on and off at specific times or control them remotely. This adds security and can be a real selling point for tech enthusiasts.

With the cold snap of a Scottish winter approaching, it's best to get your home prepared sooner rather than later. Taking good care of your investment as temperatures drop to an average of 6 Celsius for up to three months is important. So, here are some tips to protect your property from winter damage. 

Up on the roof 

Why not start at the top by inspecting your roof? But beware; there is no need to get the ladders out. Use binoculars or a camara to take a decent look. Check for broken slates or cracked tiles. If you see something that needs attention, hire the right help to get it sorted. The small cost of maintenance is much lower than big repairs.

Heating systems and insulation  

From setting up your thermostat correctly to getting your boiler serviced, the heating system is the beating heart of your home. Optimising your home's temperature, even by a single degree, can help increase energy efficiency. Check the insulation in your pipes and loft. This will stop heat escaping through the roof and help prevent pipes from cracking.  

Prepare your outdoor areas 

You may have a wonderful outdoor garden space that can become a kind of winter wonderland, especially when it snows. If you have a fire pit, having logs close to hand always makes life easier. But there may be some items that are better stowed away so they don’t disappear in the wind. 

Get your guttering sorted  

November is a pretty month, but fallen leaves can block your drains. Check that your guttering is clear and clean. Blockages are simple fixes, but the consequences can be costly. The last thing you want is a large buildup of water that freezes and damages your roof or the interior of your property.

Lighting 

You want to have your home as sorted as possible before the cold sets in. If you are replacing bulbs, try and use LEDs to increase your energy costs. Don’t neglect the outdoors of your home; a nice light can be a nice welcome home. With nice atmospheric lighting, your garden will look more attractive while creating more space.

Windows and doors 

Checking your windows for draughts or air leaks can help trap the heat. You may consider replacing curtains or entire windows. It is important to look outside to see if the ground floor walls surrounding the window frames have any defects. Some simple recaulking is another inexpensive way to help keep your home in good shape. 

Keep a flame in your fire 

Wood burners benefit from a good service. For more traditional fireplaces, keeping your chimney breathing with a sweep will allow your fire to burn efficiently. That means less time running outside for fuel to burn and more time relaxing. A lovely fire adds to the aesthetics of relaxing spaces. Electric and gas fires also offer a pleasant atmosphere with greater convenience.

When buying a property with the intention of flipping it, it’s important to consider whether the renovations you’re making are worthwhile. As such, here is the ultimate guide on how to spot a property with potential to add value.

Is the property in a desirable location?

Location is one of the most important factors to consider when it comes to determining the value of a property. Sometimes a property with potential is ‘the worst house on the best street’. This is why location is key, as you can’t change a home’s surroundings, but you can certainly improve the home itself.

Does the property offer space for conversion? 

A decent-sized loft or basement is something that you should keep an eye out for. These empty spaces offer the opportunity to add another bedroom, bathroom, or living area, making the property more spacious and, in turn, more attractive to buyers when it comes to selling in the future. 

Can the layout be improved with minor change? 

Try not to dismiss properties that are very segmented in their layout. Often, homes with separate rooms can easily be transformed into an open-plan layout. Keep a close eye out for properties where there is a small kitchen next to a large dining room that could be knocked through or a bathroom next to the main bedroom that could be transformed into an ensuite. 

Does the property have the potential to improve its EPC rating? 

It’s important to not disregard properties that currently have a low EPC rating. There are many ways you can increase an EPC rating by installing insulation, double or triple-glazed windows, a new heating system, energy-efficient bulbs, and many more. Selling the property in the future with a bad EPC rating will affect the value to potential buyers, so enhancing energy efficiency is a worthwhile investment.

Can all the property’s negatives be fixed?

When viewing a fixer-upper, you need to identify all the negatives so you can understand how simple it would be to solve them. You can provide the property with new windows and a paint job, but you can’t move the property away from a noisy main road. By having this in-depth screening of the property’s negatives, you can identify what changes you can approach efficiently.

How an agent can help

It can often seem that properties with clear project potential are hard to come by, but by enlisting the support of an expert agent, they can help you find the perfect fixer upper. As well as finding your dream home with potential, we can also support the sale of your current home, creating ease throughout your entire property journey.