Savills recently released census data regarding the gentrification of London. Their results show that wealthier individuals are returning to London and buying up property. This is creating some interesting situations. One property is becoming lower in supply as demand is up. This in turn is creating a lovely increase in housing values throughout Greater London. As a result of better housing values, over 55s are tapping into equity release plans to take advantage of the rise of the equity stakes in their homes.
More plans have become available in the last five years than before the subprime mortgage issue occurred. It also helps these plans prosper. All that is left is for anyone over 55 to see how their property stacks up on the free equity release schemes calculator for gaining a little more money for retirement. The biggest sea change in the equity release mortgage market has been the introduction of the capital repayment project. Here companies such as Aviva & Hodge Lifetime have come up with really innovative features whereby you can now repay upto 10% of the original amount borrowed each year. Therefore if an element of inheritance protection was a concerned then these fears can be allayed with these two products.
The Census Data Explained
From a period of 2001 to 2011, the Savills research team conducted a census looking at socio-economic changes throughout London and the UK. It looked at employment and occupational stability. Basically with employment growth: who is still employed, newly employed, and who has retired in terms of home buyers and owners.
Eight ranges exist for the employment status from unemployed, never worked, to finally retiring. On a map, wealth of residents was graphed to show an increase in affluent areas. The map indicated in red the areas with the most gentrification, while blue showed a less significant movement of affluent residents. It should be unsurprising that the area on the map indicates the dark red areas have had the most significant increase in new builds and regeneration of existing buildings.
Hackney is one area that has a higher strength in price growth than the outer suburbs like Wembley, Ealing, and Hounslow. The map can be found at www.savills.co.uk under research articles for the gentrification of London.
London Equity Release Plans and the Popularity Correlation
Take a moment to remember that increased demand for housing in Greater London is going to translate into more appreciation for existing homes. Homeowners having lived in London for several years, even some for more than 20 years are in a good position. They have traditional mortgages paid off, they are entering retirement, and they have wealth in property.
These over 55s, many nearing their mid-60s, can take advantage of their equity wealth. In some instances these retirees are not willing to move to a smaller home, outside of London, or even to reduce their expenses while living in the city. This causes a cash poor situation.
The beauty of these London equity release schemes is getting to money they do have because they can take out a lump sum of cash in equity. With more value in their property, it also means they have more money to take out versus earlier years when wealth was leaving the city.
Popularity not only helps bring appreciation back and stamp out the depreciation effects, but it also is seen with equity release programmes.
Equity Release Calculators
If you are aged 55 or over, you have the potential of taking advantage of the gentrification of London. You are able to determine if equity release is right for you by utilising an equity release schemes calculator. The calculator will take into account your current housing value, your age, and the standard 6 per cent fixed interest rate on many equity releases. It will do the calculation for you in determining the maximum amount of equity you can release from your home.
With this value you can then decide on the proper equity release product and join numerous other retirees in keeping your standard of living up where you want it to be.
Perhaps you also have ideas about helping the grandchildren go to University, your children getting on the property ladder as first time home buyers, or going on a world cruise. You can use the tax free lump sum of cash from equity release in many different ways. You could use it to buy a second home in the country for your holidays out of the city.
Property investment, as you are aware, is definitely hot right now. London might be seeing an increase in property sales and value, but the rest of the UK is slowly following. Given the lower interest rates, the numerous choices in equity release, and housing appreciation now is the time to buy that second home.
An equity release schemes calculator is just one tool to use. The map is also a tool that shows you where property is increasing and the areas that are gaining in appreciation next.