Selling your endowment 'could help fund home renovations'

An increasing number of people are renovating older properties to make them more energy efficient, rather than moving, it has been revealed.

The current economic climate could make moving home an unattractive option, especially with the potential necessity to significantly lower an asking price in order to attract buyers.

However, the Times has reported that some homeowners are making their current properties more energy efficient in order to lower their home heating bills. But such extension work could come at a price.

Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said many of its customers had sold their unwanted endowments in order to renovate or improve their house, rather than moving.

Speaking to the newspaper, Sarah Harrison, an environmental consultant, has told how she renovated her unmodernised Victorian semi. She fitted "state-of-the-art double glazing", invested in solar panels and a rainwater-harvesting system, as well as installing a wood-burning stove.

"We turned off the heating in March and we have only needed to turn it on twice, for an hour each time, since," Ms Harrison said.

Her household carbon emissions have been cut by 70 per cent and she uses 30 per cent less water. Indeed, the recent Halifax Home Improvement Survey revealed that green home improvements have risen in popularity as many homeowners think they will get good value for money with the future cost savings they could deliver.

Despite such savings, the initial work can be expensive. Ms Harrison paid £17,000 for her home improvements and other eco repairs, the newspaper noted.

Some Britons may decide to make their property as green as possible in order to save money on home heating bills further down the line, especially as the cost of fuel has increased.

However, as the newspaper noted, it can cost a large amount of money, a sum which many households may not have to hand during the current recession.

Rather than get into debt to fund extensive home improvements, some individuals may be addressing ways in which to raise the cash.

People who have already considered selling their endowment policies may not realise that selling their policy is another avenue they could go down.

CEO of aap Chris Radford stated that should the firm decide to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.


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