According to Legal and General Home Finance research, some of the funds are used to improved the homes’ energy efficiency, such as insulation or double glazing, but others use it for later-life accessibility needs.
The lender said that this would allow customers to “stay in their forever homes, instead of moving to a new property or going into care”.
Figures from the Centre for Ageing Better revealed that one million homes in the UK need adaptions to become suitable for current inhabitants, with a third being aged 55 and over.
Craig Brown (pictured), Legal and General Home Finance’s chief executive, said: “Property wealth can be a valuable asset for those who are considering covering more expensive home adaptations and want to increase the quality of their life.
“Our research found that home improvements continue to be the most popular use of equity release among our existing customers, helping those in later life stay in their forever homes.”
He added: “Using the loan value to help loved ones also remains a priority, with older generations wanting to pass on their wealth to financially support those who are starting their higher education journeys or are yet to get on the property ladder.
“At Legal and General, we are always listening and taking on board adviser and customer feedback, looking at ways that our products can change to reflect needs in today’s environment. It’s important to note that equity release is a lifelong financial commitment and won’t be suitable for everyone.
“Those considering applying for a lifetime mortgage must speak to a qualified financial adviser to be clear about all the options available to them.”