If she needs an income from her pensions immediately, she should shop around for the best annuity rate. Before renting, she must decide whether she really needs an extension to take in a lodger, and check the cost of building work, making sure she adds a generous margin. The loss of income from using up her capital may not be adequately made up by rental income. Perhaps she could try a lodger in a spare room for a short period to see how she gets on. Equity release is something to consider when she is much older, in at least her late Seventies.
Advice is for guidance only.
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