Yorkshire and Humber enjoy greatest home equities

Posted 2007-10-2

While the south normally reflects higher house prices in surveys, Britons may be interested to learn that some of the greatest home equities are found in Yorkshire and Humber.

According to banking group Halifax Bank of Scotland, the greatest level of home equity is typically found in London and the south-east; equalling 2% of the country as a whole.

When calculating the size of a home loan, the value of the home is usually the determining factor of the maximum amount which may be secured against it.

Additionally, £600,000 is the yardstick by which the measurement of inheritance may be bequeathed by a couple to their descendants, before tax must be paid. In the UK, one in four properties in sixty-two areas now have home values greater than £600,000.

“There are still some parts of the UK where a significant proportion of households are vulnerable to paying inheritance tax based purely on the value of their own home,” remarked Martin Ellis, chief economist at Halifax.

However, gifts that are made more than seven years before death are not subject to inheritance, according to HM Revenue & Customs.

Therefore, if a homeowner wishes to avoid paying tax on a property, they could obtain a home loan and pass the money on as a gift to their beneficiary – so long as the transaction is completed more than seven years prior to their death.

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