However most modifications are essential, such as widening doorways for wheelchairs or installing stair lifts.
Equity Release lending broke the £1bn barrier last month according to the Equity Release Council.
Vanessa Owen, head of annuities and Equity Release at LV= said: “Whilst home improvements continues to be the most popular reason for using Equity Release, market growth is also being driven by the need to meet and reduce financial commitments.
“With the reality of living on a low pension income hitting home for many retirees, it makes sense that many wish to unlock the cash tied up in their properties.
“At retirement, someone’s largest asset is usually their house and for those retirees who wish to stay in the home that they love, then Equity Release is a solution worth considering.”
One in seven (15%) LV= Equity Release customers are using the money to top up their retirement income, while helping out their family is another common reason for choosing Equity Release (10%).
Owen added: “This year’s Budget announcement gives new retirees more flexibility as to how they take their pension, but they will still see their income drop when making the transition from working to retirement.
“As a result we are likely to see demand for Equity Release grow as those with small pots look to fund their later years.
“It is essential that retirees consider all their options and that Equity Release is considered alongside other retirement income solutions so that they are able to effectively plan for the future.”
