Can I Use Equity Release for Home Improvements?
Home improvements are one of the most frequently cited reasons for taking equity release — and one of the clearest cases where the use of the funds directly benefits the property that secures the loan. There are no restrictions on what you spend the money on.
Yes — home improvements are an entirely unrestricted use of equity release funds. The lender places no conditions on how proceeds are spent. Improvements that add value to the property can even increase available equity over time.
Common home improvement uses
The range of home improvements funded through equity release is broad. Among the most common:
- Extensions and conversions — rear extensions, loft conversions, garage conversions adding living space
- Kitchens and bathrooms — full refits, modernisation of ageing facilities
- Structural repairs — roofing, damp-proofing, rewiring, new boilers and heating systems
- Accessibility adaptations — wet rooms, stairlifts, ramps, widened doorways, handrails — particularly relevant as people age in place
- Gardens and outdoor spaces — landscaping, patios, outbuildings
- Energy efficiency — insulation, double glazing, solar panels, heat pumps
The property value connection
When equity release is used on improvements that add significant value to the property, there is an argument that the exercise is self-reinforcing: the loan is secured against the property, and the works funded by the loan increase the property's value. A larger property value gives the estate more equity after the loan is repaid — and in some cases, improvements may increase the total equity available to draw on in future.
This connection is not guaranteed — improvements do not always add their full cost in value — but it means that capital expenditure on the property is often viewed more favourably by families concerned about inheritance impact than, say, funding holidays or general living costs.
Accessibility works and remaining at home
Equity release is particularly commonly used for accessibility adaptations that allow an older person to remain in their own home rather than moving. A wet-room conversion, a through-floor lift, or a ground-floor bedroom extension may cost £15,000–£50,000 but can significantly extend the period during which someone can live independently. For many families, this represents value that goes well beyond the financial calculation.
Drawdown for phased projects
If improvements are planned in stages — or if the project scope is uncertain — a drawdown equity release plan allows funds to be released as needed rather than taking a large lump sum at outset. This avoids unnecessary compound interest on funds that have not yet been used. See What is drawdown equity release?
Reviewed by Chris, CII-qualified equity release specialist · Last reviewed July 2026
Want to understand your options? Speak to a specialist later-life lending adviser. No obligation — just plain-English answers to your questions.
Ask a Question