The Home Improvement Scheme. Making Every House a Home

Transcription

1 The Home Improvement Scheme Making Every House a Home 1

2 Our Home Improvement Scheme provides access to finance for a tailored package of property and support services so that you can live independently in your own home, with comfort and dignity In England there are over 900,000 elderly homeowners trapped in properties that are no longer fit for living, struggling to access finance for repairs. At London Rebuilding Society we want to make sure that every homeowner lives in a warm, dry, safe, and comfortable home. London Rebuilding Society is a highly regarded social enterprise that provides access to fair and affordable financial services, and home improvements. After successfully piloting a government funded home improvement scheme, we have teamed up with more 2 life, an award winning specialist lender of equity release plans, and Equity Release Assured (ERA), a regulated equity release adviser, to provide a managed package of finance and home improvements for many more homeowners.

3 Contents The Home Improvement Scheme 04 How the partnership works 05 The full package 06 Benefits to you - The homeowner 08 Getting ready for retirement 09 Enabling adaptations 10 Changing life, changing needs 11 3

4 The Home Improvement Scheme If you are over 65, and need repair and refurbishment to your home but cannot access funds to pay for the works, London Rebuilding Society may be able to help. Equity Release Assured (ERA) provides you with advice to help you decide whether equity release is right for you. Together, London Rebuilding Society and more 2 life then provide you with a seamless, integrated home improvement scheme tailored to your individual needs, financed by a more 2 life lifetime mortgage. BEFORE AFTER 4

5 How the partnership works Equity Release Advice Equity Release Assured (ERA) London Rebuilding Society will introduce you to Equity Release Assured (ERA), a dedicated equity release adviser offering tailored advice that is right for your personal circumstances. They will discuss your financial options with you and if applicable the more 2 life enhanced lifetime mortgage plan in detail. London Rebuilding Society provides an end-to-end projectmanaged package of services that includes everything from arranging the survey to engaging approved contractors to undertake refurbishment, adaptations and green retrofit, and also access to support services from the local authority or local agencies. Works process London Rebuilding Society Finance more 2 life If you decide to go ahead London Rebuilding Society will assign to you a trained and experienced Client Relationship Manager to be your single point of contact who organises everything for the works package so that you stay in control but without any of the stress. more 2 life will provide you with a lifetime mortgage designed to meet your needs which will provide finance for the entire package and is only repaid on sale of the property, death or long term care. Equity release will reduce the value of your estate and may affect your entitlement to state benefits. 5

6 The full package more 2 life more 2 life offer lifetime mortgages regulated by the Financial Conduct Authority, so homeowners know they are dealing with a company that abides by recognised codes of practice. This means that all more 2 life documentation is clear, fair and transparent, with all costs and fees clearly shown. Your equity release adviser will explain these details to you. more 2 life is a member of the Equity Release Council (formerly Safe Home Income Plans SHIP) which gives homeowners further protection and a set of guarantees, and includes the requirement that you take independent legal advice. This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration. Equity Release Assured (ERA) ERA is a professional intermediary providing trusted equity release advice and is regulated by the Financial Conduct Authority. Unless you decide to go ahead ERA s service is completely free of charge, as their typical advice fee of 1.5% of the amount released would only be payable on completion of a plan. more 2 life plans are available only through professional intermediaries to ensure that homeowners take advice before making an application. 6

7 The full package London Rebuilding Society (LRS) London Rebuilding Society is an established social enterprise, an Industrial and Provident Society registered with the Financial Conduct Authority. If you go ahead with the Home Improvement Scheme, London Rebuilding Society will provide end-to-end project management of the entire package of services, including surveys, the home improvement works, integrating local delivery services to support you, and commissioning and procuring all the services. The package has two main elements, each requiring specific expertise and experience: End-to-end Project Management Contract Administrator function This fee covers all the services described in the enclosed leaflet, and includes the cost of: Valuation Financial Capability Survey Legal Fees - only if the solicitor is chosen from a panel recommended by the equity release provider (currently the Equity Release Solicitors Alliance) and the price for the work is fixed The Contract Administrator function - standard charge 8.4% of the works contract cost (7 % + VAT); maximum cost capped at 10% in complex cases. End-to-end project management of the Home Improvement Scheme - the London Rebuilding Society fee is 16.7% of works contract cost (with VAT this equates to an overall total 20% of works contract). This fee covers professional services overseeing works on site, ensuring the contract is delivered on time and within budget to the agreed standard and quality of works, with regular progress reports to LRS. 7

8 Benefits to you - The homeowner Access to finance Peace of mind from regulated product and provider Full refurbishment and adaptations Full project management No impact management No upfront payment No negative equity You retain ownership No repayment until disposal of property The London Rebuilding Society government funded pilot scheme in East London proved that financing a tailored package of property and support services can change lives. By working together, London Rebuilding Society, more 2 life, and ERA can provide finance to enable you to live independently in your own home with comfort and dignity. These case studies from the pilot scheme show the impact this can have on your life. The Home Improvement Services offered by London Rebuilding Society are a real solution for homeowners who often have nowhere else to turn. Demand for schemes like these will only continue to increase, as the housing and social care crises continue to grow. Matt Leach, Chief Executive of the Housing Action Charitable Trust 8

9 Getting ready for retirement Michael is a 65-year old suffering from early stage emphysema. He had thought about downsizing but did not want to leave the house that he and his late wife had lived in for so long. Michael was trying to keep up working as a part time chef but struggled due to his poor health. London Rebuilding Society carried out improvements, sorting out the damp, fixing the extension and installing a new kitchen and bathroom. For a loan of 33,000 Michael was able to pay off his small remaining mortgage, stop work, and enjoy life in a home fit for his retirement. BEFORE AFTER 9

10 Enabling adaptations Jean and Sidney have been married for over 40 years. Sidney is Jean s carer but is getting increasingly hard of hearing. London Rebuilding Society secured a Local Authority grant for adaptations, but the recommended work included an access lift and full conversion of the ground floor, which would cost more than the 30,000 grant. The Home Improvement Scheme provided the extra 15,000 that Jean and Sidney needed. Now their home is fully adapted and they continue to live comfortably and independently. 10

11 Changing life, changing needs Betty is a 78-year old widow. When her husband died she was left as the sole carer for her two disabled sons. One of her sons got married and moved away, and unfortunately her other son died, leaving Betty alone for the first time. Her house had fallen into severe disrepair, and was proving too much to handle. Betty had become depressed, unable to go out, and needed in-home care and support. It was like a prison before, this home. It has changed my life. It s wonderful because I look forward to going home and I can do all the things I never could before London Rebuilding Society completely refurbished, adapted and redecorated her property and made it suitable for Betty s needs as she got older. Betty no longer needs carers 3 times a day to help her manage. She visits friends, and is delighted with her new home and proud to have people round to tea again: 11

12 London Rebuilding Society 7th Floor, 45 Moorfields London EC2Y 9AE T London Rebuilding Society Limited is an Industrial and Provident Society for the benefit of the community. It is registered in England and Wales as IPS no R and as HMRC Exempt Charity No. XR65865 at 7th Floor 45 Moorfields London EC2Y 9AE 12