Understand more about Equity Release
The younger generation are increasingly finding it harder to get on the property ladder due to the rapid increase in property prices.
The average price of a property in the UK is now approximately £265,000.00. Property prices rose by 14.3% in the last year to March 2022, the largest increase since 2004. The Stamp Duty Land Tax cuts contributed to the property prices increasing. A recent article in the Guardian newspaper stated: “UK property prices grew in March at the fastest rate since 2004, continuing the ascent to new record levels – with the price of an average property now a fifth higher than at the start of the coronavirus pandemic.”
“The property market has retained a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs,” said Robert Gardner, Nationwide’s chief economist. “A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices.”
The older generation have seen their properties price increase in value over recent years while children and grandchildren struggle to get on the property ladder due to the property prices.
In order to help children, many parents are taking out Equity Release finance on their property to provide their children with a deposit to purchase a property and get on the property ladder.
Equity Release mortgages allow the over 55s to release funds from their property whilst continuing to reside there. An Equity Release mortgage allows you to release a lump sum so you can improve your property, pay off your mortgage/debts, take a holiday, supplement your income, or make a gift to a family member. Equity Release requires specialist legal and financial advice.
“At Mullis & Peake LLP Solicitors we are seeing a growing number of instructions in Equity Release matters each year. We are current members of the Equity Release Council. We provide detailed analysis of the Equity Release offer and our service includes the following:
- Advise on other alternatives
- Equity release consequences explained
- Face to face discussions”
Please contact Paul Fursman on 01708 784037 if you wish to obtain advice on an Equity Release. We also have a free Equity Release guide you can download here.