Mind the gap

Mind the gap

By Ian Macbeth

Mind the Gap. An Avocado Property Market Insight.


We find a lot of our clients are families and as a result they are often planning to upsize. The question is can a family in need of space, out save the increase in value when we are in a market like this…? 

An 11% year on year increase means your property is worth much more than you might think. It also means the price of the house you might be looking to upsize to is worth more now too. That part is simple. Example below.

3 Bed End of Terrace Property £375,000 (in 2020) 
3 Bed End of Terrace Property £416,250 (today) 

A massive £41,250 increase! More equity could mean a new loan to value mortgage rate, as your potential deposit size is larger and the interest rate hopefully is lower too .
If you are not planning to move then staying where you are and re-mortgaging after your fixed term ends is a great option. Especially if you are planning to do an extension or any other property upgrades. Be aware you can also ask for a new valuation on the new fixed term to push your overall house price up and the loan to value down.

If this is something your keen on doing or chatting about, we can help with advice or recommend a broker for you anytime. Just pop some info in the contact us form below:           

You might however use the new equity to get a new house... Typically house prices increase, so the sooner you do the upsize the better for the total mortgage amount you will pay off over your lifetime. Continuation of the example below.

Take a 4 bedroom house worth £600000 (2020)
The same house would now be worth £666,100 (today) 
Maybe climbing to around £750,000 in 2026

House prices go up in the UK over 10 year chunks, they always have and always will. There is a shortage of property and the demand is there.

Mind the gap

PS don’t forget mortgage deals are at an incredible low currently so even if the price on that dream home is higher than you wanted; the monthly amount is much, much lower than it would have been 12 months ago.

Get in touch with us

Pinner’s Property Market Now Worth £12.937 Billion

As we hit the third week of December, the Pinner property market does slow down ready for the big day. It’s at this time of year, I like to work out the total value of every home in Pinner, and how that value has changed since 2010 (as that was the bottom of the market after the Credit Crunch).

CLICK HERE >

Have You Seen Any Serious Offers Yet? Here is the Real Reason Why Not…

If you’re Googling any of these right now: “Why am I getting viewings but no offers?” “What does buyer feedback really mean?” “Is my house overpriced or just badly marketed?” You’re not alone, and you’re right to ask. Because when buyers are walking in, nodding politely… and then vanishing or worse giving 'naff' offers, something’s misaligned.

CLICK HERE >

Binfield’s Property Market Now Worth £5.22 Billion

As we hit the third week of December, the Binfield property market does slow down ready for the big day. It’s at this time of year, I like to work out the total value of every home in Binfield, and how that value has changed since 2010 (as that was the bottom of the market after the Credit Crunch).

CLICK HERE >

Do You Feel Your Home is Getting the Attention it Deserves?

It’s been a few weeks (maybe longer), and the buzz has faded. Viewings are few and far between. Updates are sparse. And your agent’s enthusiasm? Nowhere to be seen.

CLICK HERE >