In just a few short years the London Cross Rail Project is going to be finished. In 2018, more Londoners will be able to move about with ease and save time. Congestion will be down and this is expected to help the property values in and around London increase. In fact, there are plenty of hotspots throughout London which are already seeing a significant increase. While Prudential equity release may have been revamped, there are still plenty of other equity release products that are going to help in terms of property value increases.
It might seem a little silly to say that housing price increases will in turn cause an equity release London sales boom in the entire UK. It might be even more difficult to see how the Cross Rail Project is also one of the reasons for this.
The Housing Boom
Housing prices are increasing in London. This is based on the demand of the wealthy buying up property in London and nearby communities. As the Cross Rail project begins to open new doors for commuting from such places as Newbury, Kintbury, and Midgham more consumers who can afford London property are going to move in. Time travel between Paddington to Canary Wharf is another area of improvement that is going to help these regional areas. Given that families have grown up and worked in London, it is nice to see there will be even more reason to return while property is still in the growth stage.
Prices have yet to reach the heights they hit during the 2007 inflation. This means that buying property right now is perfect. What it can also mean is trouble with pensions later on.
Ending Work and Living Leisurely
Living in London is expensive on a daily basis. Prices for food, entertainment, and a host of other things are much higher in London than rule areas. It all has to do with the wealth and the money found in the city. When someone reaches retirement age like age 65, it can be quite easy to continue on the same life expenditures as before without realising that money is somewhat limited.
Since money is not coming in, it makes those with actual property ownership cash poor, but equity rich. There is a way around this situation, and this is how the new Cross Rail comes into play with seeing an increase in UK equity release sales.
As buyers move into London, they are spending their money to avoid having a mortgage and still live a comfortable life. When the money is spent and all that is left is property richness, it is time to turn towards London equity release schemes.
Those already in London may have started to feel the increase in equity release boom already. In fact in the last year London equity releases are up by several thousand consumers compared to after the housing market crash.
Products have also changed. Prudential equity release that was so popular in the 2000s has become obsolete in the 2010s. Part of the change has been with more regulation of the entire mortgage market including equity release schemes. There has also been a significant change towards offering different and more diverse products.
For those on the move into London equity release can bridge the shortfall between the purchase price & the deposit to be put down on the purchase. Just like any conventional mortgage works in practice, equity release plans work by using the same principles. The only difference is how the maximum equity release lump sum is calculated. Using age, property value & optionally health & lifestyle.
In order to keep up and to deal with any fallout from bank closures some companies have given over the reins to better equipped equity release lenders. In any case, whether Prudential may offer a new product in years to come or not, the focus should be on the current housing market, potential lifetime mortgage maximums, and better living in London.
Real Estate Firms Popping Up
Solicitors and real estate firms dealing primarily with London real estate and equity release products have seen a significant increase in sales since June 2013. Pretty towns that took a long commute by driving a car are opening up with the Cross Rail, which is why these towns are seeing more real estate offices locally. There is a call to ensure that buyers have in town experts to help with the purchase of their new London property.
Dorset, Newmarket in Cambridgeshire, Exeter and Exmouth in Devon, and even Taunton in Somerset are starting to see the effects of the Cross Rail helping London. These areas are becoming key places to get real estate now with new equity release products. Families with over 55s are getting help too. Whether it is a product similar to Prudential equity release or an interest only lifetime mortgage, retirees are helping their kids secure property on the Cross Rail too.