LV= has updated criteria for its lifetime mortgage lump sum+ policy so holiday homes can be rented out for up to four weeks at a time.
This will also include properties that are rented out through services such as Airbnb.
Andrew Gilbert, head of life products at LV=, said: “At LV=, we embrace the flexibility that our customers need when preparing for retirement.
“As people are living for longer, it is no surprise that demand is rising to release equity from property, especially when it’s usually the largest asset that you will have in your working life.
“We strongly encourage people considering equity release to speak to a professional adviser to ensure that it is the best solution for them.
“It is very important to seek financial advice upon entering retirement to confirm that you are financially and emotionally ready to embark on this complex process.”
LV= has seen a historic rise of customers taking up the scheme, with half year sales of equity release reaching £88m – 66% up from 2017.