Prime London Real Estate is in the news again and this time it is Chesterton Humberts Agents that are doing the talking. You might want to get out your Aviva equity release calculator so you can decide whether the gilt-edged payment scheme is for you or if you just want to ride the tide.
The experts expect real estate in London to rise 10 per cent compared to FTSE indexes and gold, which are set to increase 7.8 per cent and 1.4 per cent in the next 12 months, respectively. The index analysis further states that the property market is seeing a small number of available locations while prices are being driven up in London.
Foreign and domestic home buyers are looking to make purchases. For foreign buyers it is mostly apartments that have a quick return on investment and quick sale option. It is an opportunity for them to increase their portfolio. Domestic buyers want to stay in London to enjoy the main amenities of the Capital. They are also helping economy recovery push forward, which helps the entire UK property market.
Equities are another area that is supposed to improve in time, but it will be slower in pace. Gold remains a safe haven for investors over stocks. Yet, in 2013 an 11 per cent increase in prime capital occurred. Oil is another area that might see some fall with major importers thus making housing a more reliable vehicle for investing and ROI (Return on Investment).
Chesterton Humberts has forecast a property value increase of 9.7 per cent each year, with a 48.5 per cent increase in the next 5 years. Evidence iscertainly clear for investing in real estate or remaining in an investment already attained. By looking ahead it is possible to see that property growth is going to continue in value, while supply remains fairly low.
Remaining in London property is certainly a possibility for retirees. A worry is that many of these individuals are going to hit their later years say after their 70s and turn cash poor. Pensions; especially, with stock indexes looking poorer than real estate can decrease and eventually evaporate during use. It leaves a choice of leaving London, giving supply to new wealth, or remaining in the home a family has had for more than 20 years by utilising equity release.
There are security worries with equity release schemes there is no doubt about it. Many home owners worry they will be unable to repay the mortgage even with a sale of their property at death and leave behind an inheritance. This is where the range of Aviva equity release products can be quite helpful. Furthermore, Aviva’s website includes the free use of the Aviva equity release calculator which can assist in ascertaining the maximum equity release possible.
You can calculate the potential expense of the equity release product you are most interested in. You can determine what you can take out, if it would be enough to live on, and still leave inheritance for your beneficiaries.
With a London equity release plan, as the property continues to increase in value there is more money in the property, which in turn increases the net equity value one holds. This can help keep the inheritance intact. Furthermore, it gives you something that can continue to supply a return with the right equity release product. A drawdown lifetime mortgage opens up a maximum equity sum that you use as you need it rather than getting it all at once. This keeps the interest rates low. It also helps you tap into more equity as the property value increases.
You never have to repay the loan while you are living in the home or even while you are alive in the home. You get to stay your entire lifetime. At the end the home can be sold or other things like investments and life insurance can help pay off the lifetime mortgage. The capital sum and the interest are always paid together at the end.
Other options exist for paying off a lifetime mortgage. Gilt or conventional gilts are government products based on the liability of the sterling. The HM Treasury offers these products. You can take out a gilt, gain payment every six months, and then at maturity the gilt pays off in full offering you a nominal amount of money. You can invest in such an option over gold and stock market products. By investing in this coupon, you have a means of repaying the lifetime mortgage.
You may discover that repayment happens earlier due to the funds from the gilt. You could also use the gilt to cover repayment charges that occur when the mortgage is paid off too early. Check out these options and examine an approved equity release calculator results to see if it works for you. One calculator providing three calculations is the www.EquityReleaseCalculator.net website. They will allow you free of charge to tap into this information.Back