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Renovations and Improvements: Enhancing Your Home with Steadworth
Renovations and Improvements: Enhancing Your Home with Steadworth

Planning home improvements with a Steadworth agreement? Learn about the process and how it impacts your Wealth Share.

Updated over a week ago

Steadworth's Home Wealth Share Program encourages homeowners to maintain their properties and provides the flexibility to make improvements that enhance their value. However, it's important to understand the process and potential implications for your Wealth Share when considering significant renovations or improvements.

Communication and Consent

Before undertaking any major renovations or improvements, it's crucial to communicate your plans with Steadworth and obtain their prior written consent. This allows Steadworth to assess the potential impact on the property's value and ensure that the project aligns with the terms of your Home Wealth Share Agreement.

Evaluation of Improvements

Steadworth will require a professional appraisal, at the homeowner's cost, to determine the value of the property "pre-renovation" and then "post-renovation" to determine a 3rd party value of the renovation. This assessment helps ensure that any increase in value attributed to the improvements is accurately reflected in the calculation of Wealth Share Proceeds upon the eventual sale or refinance of the home.

Impact on Wealth Share

Improvements that enhance the property's value can benefit the homeowner. However, it's important to understand how the value added by the improvements is factored into the Wealth Share calculation:

  • Remodel Value: The value directly attributable to the improvements, as determined by an independent appraisal, is known as the "Remodel Value."

  • Wealth Share Calculation: When calculating the Wealth Share Proceeds upon sale or refinance, the Remodel Value is deducted from the Ending Home Value. This ensures that the homeowner benefits from the full value/credit for the Remodel Value (i.e. the Remodel Value is not shared with Steadworth).


Suppose you purchase a home for $500,000 with a 10% Down Payment Split from Steadworth and a 40% Wealth Share. After a few years, you invest $50,000 in renovations that increase the home's value to $600,000. An appraisal determines that the Remodel Value is $40,000.

  • Total Appreciation: $100,000
    ($600,000 - $500,000)

  • Appreciation Excluding Remodel Value: $60,000
    ($100,000 - $40,000)

  • Steadworth's Wealth Share: $24,000
    (40% x $60,000)

  • Your Wealth Share: $76,000
    (60% x $60,000) + $40,000

In this example, you benefit from the full $40,000 Remodel Value, while the remaining appreciation is shared with Steadworth according to the agreed-upon percentages.


  • Cost of Improvements: Carefully consider the cost of the renovations or improvements.

  • Return on Investment: Evaluate the potential return on investment for the improvements and ensure they are likely to enhance the property's value.

  • Compliance with Agreement: Ensure that the planned improvements comply with any restrictions or requirements outlined in your Home Wealth Share Agreement.

By communicating with Steadworth and understanding the potential impact on your Wealth Share, you can make informed decisions about home improvements and enhance the value of your property while participating in the Home Wealth Share program.

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