The London Rebuilding Society has relaunched its home improvement scheme in partnership with Legal & General Home Finance and Age Partnership.
The scheme is aimed at cash-poor over-55s who wish to remain in their homes and to do so require funds to bring their property up to Decent Homes Standard.
According to the society, there are 100,000 households within the M25 who fall under this situation.
The proposition consists of an equity release product that enables an individual to borrow as much as they want with no upfront fees or costs. It features no monthly repayments, a six-year defects warranty on the house, and the money is only repayable upon death, sale, or if the borrower goes into care.
According to LRS, a surveyor will assess a property for repair or refurbishment and outline a cost plan, which the homeowner is then free to approve.
LRS will also review a client’s eligibility for various grants and help them claim these. A project manager, who is charged with organising the works will then be appointed.
The equity release product interest rate is fixed for the lifetime of the term, and currently ranges from 3.5 per cent to 5.5 per cent.
The idea was first piloted across London and is now being expanded to the South of England. LRS says that it plans to offer the scheme nationwide.