How London Inner City Gentrification Helps a Release of Equity
Gentrification is changing how Londoners view the city. It is not only about the inner city becoming enhanced with new shops, more opportunities, and conveniences. It is also about wealth and the desire to have everything right there without having to travel. A part of this change has been attributed to the London Summer Olympics which helped revive an inner city location. The slums are gone and real estate around Olympic Park is skyrocketing in affordability. Suburbs in the west and north sections of London are starting to lose out against places such as Hackney, Stratford and the Isle of Dogs. Something that is helping with the change up is London equity release schemes. Discover the tools like equity release calculator and which lifetime mortgages are helping the move to revamped areas from those that are now over a decade old.
The Previous Situation
When housing prices became more affordable in outer areas of London, people started to move outward. The prices in London were too high for the best areas and other areas started to turn into slums. As age of buildings grew older the desire for something new, safer, and more affordable happened. Now the housing prices in London have been lower, which sparked an interest in the available homes. As housing prices work to repair after two recessions there are definitely going to be consumers more interested in getting into the most convenient London areas now versus waiting until the full recovery is in place.
Gentrification or wealth returning to the city is often found through these release of equity schemes. It is not the up and coming generations with their new diplomas who are searching out inner London. Instead, it is retirees who want the conveniences of the city from great places to shop to entertainment. It is the over 55s that can actually afford the new move into the higher priced areas of London.
They are the wealthy not only in terms of working and establishing a pension, but also in cash property. As housing prices return in London, there is a potential for the wealthy to move up in postal code to the prime real estate according to Savills and other researchers.
London over the Last Year
Housing prices and rents started to increase even after the mortgage crisis created economic issues. With housing price dipping all over the country and particularly in London it made it easier for those with money to oust unemployed or low paid employees.
Central London has changed over the last year as there are still over 55s seeing the benefit of low equity release interest rates combined with slightly increasing property prices. Once the market has fully rebounded in London the desire to move in will be slightly less, although not gone altogether.
Where Equity Release Comes In
No one who has retired is willing to pay on a 30 year fixed traditional mortgage. They have already paid their time with mortgages. Equity release taken in London enables a move to inner city London, into prime real estate, without having to pay a monthly repayment. It is done by using equity release products specifically created for retirees.
Equity release such as lifetime mortgages allow a person to take some of the equity out of their home. It can be used to buy a second home, which is where London and its better real estate choice come in.
First someone can take out a home equity release plan on their current property. They can buy a London home outright and then they can either sell the second property or switch the lifetime mortgage to their main residence in the city. Even if the lifetime mortgage remains on one property there is no need to make a repayment until the end. Interest will accrue, but the payment does not have to be returned until the end of life or the home that contains the mortgage is sold. For some it is a win-win situation.
Most often what happens is the Londoner gains a new home in the better area of London by buying outright with a sale of their current property. In a little time, they take a house in the country that is much less and use their main property for the lifetime mortgage. Homeowners looking at such possibilities can use the bespoke London equity release calculator to determine the best rates and get the best deal.
In the end they have a better area of London to call home, a second home in the country, and a lifetime mortgage to pay only after they expire. Find out if this would work for you by using an equity release calculator to figure out the costs.