How can you get money back from your home?

Buying a property is the most expensive purchase most people make, with the average house price in the UK coming in at £269,945, what ways can you make money from your property and access some of the funds that have been put into the home? 

Downsizing 

If you have fully paid off your mortgage, you can directly access a large chunk of your home’s value by selling the home. You can then move into a home that is less expensive, allowing you to keep the price difference for yourself. This is a great option for older people who may not need a home to accommodate for what was previously filled by children living in the home. If you travel for a large proportion of the year, you may not need a home that is as expensive or big as your current home. Downsizing could be a good option to give you some more money. Crawford Home Buyers offer a service to buy your house in as little as 7 days. 

Renting 

Perhaps the most common way to make money from a home is by renting the home out to a tenant. This allows you to receive monthly payments from your property, however, you will need somewhere else to live. You could buy a new home and use the monthly income to help to pay for the new property. You could also move into a rented home yourself and use the income from your previous property to help to pay for your new rent payments. If you move into a home with rent payments which are less than the rent your tenant pays, you can make a profit while living in a home paid for by your main property. 

Equity release 

If you have no interest in renting or moving home to access money from your home, an equity release is an option. By opting to take out an equity release mortgage, you can access some of the money stored in your home’s equity. This process works by a lender giving you cash in exchange for a share of the equity of your home, this is then settled and repaid when you leave the home. 

Renting a room 

If you have a spare room in your home that is otherwise unused, you can rent out a single room. This involves finding a tenant that just needs access to a room in a home to stay in. This could be a student or a person travelling to the UK in need of somewhere to stay. Renting out a room in your home can make you up to £7500 a year! 

XOXO

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