London commuters have their pulse on the city in more ways than one. Finding great schools, having conveniences one desires, and simple transport needs have all influenced how London moves the rest of the country forward. Add in the property prices which have started to increase significantly in the last years and commuters are starting to increase UK housing prices. It takes a little longer for country areas to see the effect, but it is happening. Some generations are working at home for two days and then going into London the rest of the time. For retirees or those over 55, something else entirely different is going on which starts with the use of London online equity release calculator.
The Over 55s are Pushing for Growth
Buying a second property in the country is just one thing that Londoners over the age of 55 are doing. They want to have a rural home for relaxation, but still have their finger on the pulse of London. London commuters getting closer to retirement are also looking at the possibility of having enough money to spend in retirement and whether they need to move house using such London equity release schemes. As housing prices in London spike, many retirees looking to rest in the less busy sections of Greater London know that now is the time to sell. In selling, they can gain equity from their home and buy something a little quieter yet still next to the city they love. Once that money is used, an option is to release equity from their home.
Several reasons can be used for why growth of the housing market is being pushed not only in London, but outside of it. One main factor with regard to commuters is that they are hoping to increase their equity release as a means of taking advantage of better London real estate, which helps push the growth of the maximum equity release.
On the flip side when housing prices increase in areas like London and Greater London there is a potential to tap into more equity in the existing home. Rather than moving house this is the main focus. Commuters wish to have more income for when they go into the city. In order to gain this income they turn to equity release schemes. As bringing wealth into the economy is mainly through equity releases right now this pushes for the growth of housing values. As housing market values increase the maximum equity release amount increases as well.
Calculating the Potential
With a website specifically tailored towards London themes and aided and abetted by an equity release calculator, it is possible for anyone over 55 to start calculating their chances of increasing their maximum equity release. The online calculator is going to take the value of your home, your potential life expectancy based on current age and health, and determine the maximum lump sum you can take out in a lifetime mortgage.
Only a certain percentage of equity can be released from a property with these products. There is no repayment of capital sum during the lifetime of the owner. Instead, it is the beneficiary that will have to make arrangements for the repayment. This is because no monthly payment is needed. Of course, if the homeowner moves out of the home then the loan has to be repaid then. But on the assumption a London homeowner decides to pass away at home, the compounded fixed interest rate adds onto the capital sum borrowed. This can never be greater than the housing market value.
As the London housing market is increasing in value right now, it means there is a potential to tap into more equity from the home. With Londoners calculating potential lump sums it helps push the value even higher in several London areas, thus helping the entire UK.
How are Homeowners Using this Money?
Already it has been discussed that other properties might be purchased which helps the growth of the property market. It is not the only reason, though. For some Londoners, getting more equity released from their home is about obtaining a lump sum they can gift to their children. This gift is then used for a down payment on a property perhaps outside or near London. Again over 55s are helping the housing market improve even indirectly by taking out an equity release mortgage and allowing their children to use the proceeds from it.
Whether you decide to use your equity release for this matter or you hope to increase the equity release maximum, take advantage of the information you can learn via the www.EnhancedLifetimeMortgage.co.uk website.