Legal & General Home Finance has launched an equity release mortgage range for homes worth over £1m after the number of properties that have topped this mark has almost doubled over the last five years.

The lender says its Premier Lifetime Mortgage will “meet the changing needs of people at retirement who want to use property wealth to fulfil their goals, and to provide a better solution for the rising number of property millionaires across the country”.

It adds the range, which comprises two products, comes with additional support for brokers when dealing with higher-level loans.

The lender’s Lifetime equity release loans are available to homeowners over 55.

The move comes after analysis from the firm shows that the number of wards in England and Wales with an average house price of more than £1m has jumped by 95% between December 2015 and December 2020, according to the Office for National Statistics data.

Annual house price growth hit 7.1% in August pushing the average home to £262,954, according to today’s Halifax house price index.

However, the building society’s data showed that price rises in some regions were much higher, with Wales hitting 11.6%.

The mutual adds that Greater London saw an average increase of just 1.3% – although it points out that the average house price in the capital comes in at £508,503.

Prices rose following the now tapering stamp duty holiday, which sparked demand for more spacious homes in towns amid the pandemic.

Legal & General Home Finance says that if house prices rise by more than 10%, up to 18 additional wards in England and Wales would hit the £1m category – a 40% lift.

It says the majority of these areas are in London, in wards such as Knightsbridge and Belgravia, the West End and Dulwich Village.

But adds in recent years wards outside the capital have joined this rich list, such as Sevenoaks Kippington in Kent, Gerrards Cross in Buckinghamshire, and Woldingham in Tandridge, Surrey.

The firm says: “With house price growth in London stagnating relative to the rest of the country this could see a greater number of areas outside the capital with a median local house price value of more than £1m.”

Legal & General Home Finance chief executive Claire Singleton adds: “The steady growth in house prices has come at a time when the societal need for more effective solutions at retirement is also on the rise.

“We know that people want to provide a living inheritance, support their family members or simply maximise their own retirement income.

“A greater number of people could benefit from taking advantage of their property wealth as part of their long-term plans.

“With more ‘property millionaires’ across the country, lifetime mortgages can be a useful tool to help you enjoy the retirement you want.