RELEASING CASH FROM YOUR HOME

Size: px
Start display at page:

Download "RELEASING CASH FROM YOUR HOME"

Transcription

1 RELEASING CASH FROM YOUR HOME As a recommended adviser for the Society of Later Life Advisers (SOLLA) we are frequently asked to advise on home income/equity release plans. These notes are designed to provide some general background to clients who are considering their options in this quite complicated area. Section Page Number 1. BACKGROUND ALTERNATIVES TO MORTGAGING OR REVERTING YOUR HOME Trading Down Sell Up Sub Let DIY Local Authority Grants Negotiate With Your Creditors INTEREST ONLY MORTGAGES LIFETIME MORTGAGES Cash Plans A Single Lump Sum A Loan Facility The Shared Appreciation Mortgage Home Income Plans HOME REVERSION PLANS EARLY REDEMPTION THINGS YOU NEED TO THINK ABOUT BEFORE YOU SELL OR MORTGAGE YOUR HOME Your Health Early Repayment Passing Assets To Your Children What About Future Needs? Children / Carers Personal Relationships Benefits Tax... 7

2 8. CONSIDERATIONS AFTER YOU TAKE OUT AN EQUITY RELEASE PLAN THE TAX EFFECTS OF EQUITY RELEASE PLANS Income Tax (IT) Capital Gains Tax (CGT) Inheritance Tax (IHT) Stamp Duty Land Tax (SDLT) THE EFFECT OF EQUITY RELEASE ON BENEFITS State Pension Credit (SPC) (Was Minimum Income Guarantee Tax Free) Disabled Persons Allowances Disability Living Allowances (Tax Free) Attendance Allowance (Tax Free) Invalid Care Allowance (Tax Free) Disabled Person s Tax Credits (Tax Free) Incapacity Benefit (Taxable) Severe Disablement Allowance (Tax Free) Funeral Payment (Tax Free) Council Tax Reduction (Tax Free) Housing Grants LONG TERM CARE (LTC) COSTS AND EQUITY RELEASE PLANS BORROWING OR REVERSION? Page 2 of 12

3 1. BACKGROUND There are many reasons a homeowner may consider borrowing on their property in later life. They may be asset rich and income poor and therefore wish to take money accrued in their home to provide lump sum or regular income to improve their day to day living experience. They may wish to help their own dependants/children with a lump sum now, rather than pay inheritance tax on the money when they die. There may be a personal need for a lump sum, perhaps the property needs improvement or a new car is desired. There may be existing debt which is draining cash flow. Whatever the reason the solution (if appropriate) is to borrow on the value of your home to meet the needs of today at the cost of the final proceeds available to the homeowner or their dependants when the property is finally sold. 2. ALTERNATIVES TO MORTGAGING OR REVERTING YOUR HOME Before anyone considers taking out a charge on their existing property it is important that they consider the alternatives, some of which are listed below: 2.1 Trading Down Whilst this is perhaps stating the obvious, anyone considering equity release should also consider selling up and buying a smaller property. Agreed the costs of moving are substantial but it can often be a far better long term solution that long term debt. 2.2 Sell Up Why have the hassle of home ownership when you can rent? Sell up your current home, invest the proceeds (or give them away and save inheritance tax if you have a good pension) and know that you will have no maintenance worries in the future. As an alternative move in with relatives. Many people dread this idea (usually the children!) however it can be a very satisfactory solution which enables children to buy a bigger property and provides security to parents in their later years. 2.3 Sub Let We have several clients who have sub let portions of their property to provide them with an excellent income to supplement their life style. Consider renting a room under the rent a room scheme. This could provide companionship plus extra income ( 4,250 pa tax free in 2015/16). Page 3 of 12

4 A further version of this option is to let out your property and move to a smaller less expensive let home thus saving the difference in cash flow (remembering of course that you usually have to pay tax on rental income and you don t get tax relief on paying rent). 2.4 DIY We have arranged several DIY home reversion plans with family members. This is a great way to provide the funds aged parents may need, provide offspring with a fantastic investment and save significant amounts of tax. 2.5 Local Authority Grants If you need to undertake home improvements and your income and capital are below 8,000 you may be eligible for a local authority grant. 2.6 Negotiate With Your Creditors If individuals above retirement age wish to turn unsecured borrowing into secured borrowing in order to consolidate debt, one has to ask whether there might be better ways of dealing with the issue. Even today s lenders get embarrassed when they realise they have over lent to people who clearly cannot afford to repay the debt and you can often negotiate terms for repayment of credit card and other debts which do not maintain the exorbitant interest rates being charged. If all else fails the individual voluntary arrangement (IVA) regime is now much less painful than it was before, meaning that you may only have to pay a % of the debts you have incurred rather than you paying 100%. 3. INTEREST ONLY MORTGAGES Many people have interest only loans and had hoped to continue same indefinitely. Changes to EU rules and the recent banking crisis means that lenders are being really strict about having these loans repaid by your retirement age. Most lenders insist on age 65 for repayment, some now allow age 70. It would be interesting to see an age discrimination case go to the EU Court of Human Rights on this (and it must change as we all work into later life) but for the time being taking out an interest only loan in retirement is not usually possible. There are some providers who are prepared to offer interest only loans to those aged over 65. These usually have the same terms as lifetime mortgages but have the option to pay the ongoing interest if required. 4. LIFETIME MORTGAGES Page 4 of 12

5 This is a loan secured on the property only available to individuals above a specific age (typically 60 to 65 and above) with the interest either being rolled up, or paid by the borrower each month. The mortgage need not be repaid until the property is sold due to the death or permanent vacation of the property by the borrower(s) (ie moving into permanent long term care). The maximum mortgage available to you will depend upon your age, your state of health, and the valuation of your property. Generally speaking, you will pay a significant premium above current loan rates so for instance currently (February 2015) you can get a five year fixed rate mortgage for perhaps 3.5%, a lifetime mortgage will be nearer 6.5%. The reasons for the higher cost is partly due to the term of the fixed rate loan (the borrower might live 25 years) and because the lender does not get any cash flow during the period of the loan so, in effect, has to cover off the cost of borrowing and the lost interest receipts for the mortgage term. Usually the loan is charged at a fixed interest rate for the lifetime of the cash borrowed. 4.1 Cash Plans Cash plans provide two main options A Single Lump Sum The lender gives you a capital sum which you do not have to repay until the property is sold (either on death or moving into permanent long term care) A Loan Facility The lender states the maximum they will lend on the property and then you draw down capital as required. Each tranche of loan will be at the rate appropriate when the money is transferred to your account, so for instance you might have a facility of 150,000 and take an initial 30,000 at 6.5% today then in 5 years time you ask for another 30,000 but interest rates have risen so the rate on that tranche is 12% pa and so on as you draw the loans down. 4.2 The Shared Appreciation Mortgage I have not come across one of these since the 1990s, however, the principle is that you borrow a mortgage equal to say 20% of the current value of your home. Rather than paying interest on your cash when the property is sold, say 30% of the value goes to the lender. As this route does not involve the sale of a portion of your property outright, it is a mortgage not a home reversion plan. 4.3 Home Income Plans Prevalent in the 1980s these plans are usually self constructed in today s market. Money is borrowed from a lender on an interest only basis. The money then purchases an immediate Page 5 of 12

6 annuity (also called a purchased life annuity) which generates a guaranteed income which hopefully repays the interest on the loan as well as a surplus for the borrower s benefit. At this time this is not an attractive option due to extremely low annuity rates. It is worth noting that if you have a lifetime mortgage and you own the property as tenants in common then when one of you dies, their share of the lifetime mortgage may have to be repaid. 5. HOME REVERSION PLANS With a home reversion plan the homeowner sells his or her property to the reversionary provider in exchange for a lump sum or income. They remain within the property thereafter as a tenant until such time as the property has to be sold (ie they die or have to go into permanent long term care). As a home reversion plan is a sale of part, or all, of the property it can generate more cash than a lifetime mortgage. The downside is you lose the future uplift in property values. Like the shared appreciation mortgage you may sell 100% of your property, but you will only receive a percentage of the value as a lump sum (say 50%). Some partial home reversion schemes allow you to revert more at a later date whilst others provide a guarantee period during which they will compensate your estate should you die unexpectedly. 6. EARLY REDEMPTION Please remember that almost all of the home income schemes provide fixed interest lending where the lender returns are linked to long term gilts. If you decide to repay part, or all, of the loan the lender will want compensation based on the costs of buying back your mortgage from the fixed rate SWAP market. Depending upon whether variable interest rates have risen of fallen at the time you want to repay you could be looking at up to 25% redemption charges (ie you borrowed 100,000 to repay it you have to pay 25,000 in penalties plus costs). At this time (August 2015) interest rates are very low and it is unlikely they will fall further so big redemption penalties seem highly unlikely, however, the risk is still there particularly if you take out a draw down loan and subsequent borrowing is at a different rate. Most home reversion companies will not allow early repayment or redemption and will insist the property is sold. 7. THINGS YOU NEED TO THINK ABOUT BEFORE YOU SELL OR MORTGAGE YOUR HOME Below we have listed some of the considerations you should address before taking the plunge with a lifetime mortgage or home reversion plan. Page 6 of 12

7 7.1 Your Health If you are in poor health you may be better off to consider other alternatives such as borrowing from your children. A home reversion is a sale of your property. The actuaries of the institutions allow for a normal lifespan when calculating their rates so you would be getting a poor deal. 7.2 Early Repayment If you are likely to want to move in the next few years you may end up with a significant early redemption penalty on the mortgage of up to 25% of the amount borrowed making the equity release mortgage a very expensive proposition. 7.3 Passing Assets To Your Children If you want to pass on assets to your children then clearly an equity release plan will reduce the ultimate inheritance. If your children have the means it could be much better to borrow from them or sell them the property. This creates a charge on your estate and ensures they do not lose out on the rising value of your property. 7.4 What About Future Needs? Are you trying to resolve a minor problem now, only to prevent your ability to support yourself properly in 10 years time? Would it be more sensible to downsize rather than mortgage your current home? 7.5 Children / Carers Do any of your dependants live in your home? Will they need a roof over their heads when you die? Clearly, if you have an equity release plan the property will have to be sold. 7.6 Personal Relationships What happens if one of you dies? If you are single what happens if you marry / live with someone? What happens if you divorce? As anything seems possible nowadays what happens if you have more children? 7.7 Benefits Are you in receipt of any means tested State or Local Authority benefits? Taking out an equity release plan will almost certainly affect your entitlement. 7.8 Tax Most equity release products will generate taxable income which will increase your tax burden and reduce the benefits of the whole process. Page 7 of 12

8 8. CONSIDERATIONS AFTER YOU TAKE OUT AN EQUITY RELEASE PLAN. There will be no change in your liabilities of ownership. You will still have to: pay your council tax; maintain the property in good order; keep the property insured; Not fall foul of the Planning Acts or Local Authority regulations. You will not be able to sublet the property without the lender s prior consent (it will not be given for a home reversion) and you will have to notify the lender of anything which may significantly affect the value of the property. You are not allowed to carry out substantial work on the property without the lender s consent. 9. THE TAX EFFECTS OF EQUITY RELEASE PLANS An equity release plan impacts on a number of taxation areas. 9.1 Income Tax (IT) The lump sum will be invested and that in turn will generate taxable income (or the recipient may choose an income plan). If the recipient does not pay tax now they may start to pay tax in future. If the recipient was in receipt of age allowance this may be reduced at a rate of 50% for each pound received over 27,700 income pa (2015/16). It may push the recipient into a higher rate of tax. 9.2 Capital Gains Tax (CGT) Other than perhaps investing the equity release lump sum to generate gains and use the annual CGT allowance ( 11,100 in 2015/16) this tax should not affect an equity release decision (although look at my comments concerning undertaking a reversion to your dependants). 9.3 Inheritance Tax (IHT) Equity release can be a brilliant IHT planning tool. One does, however, have to be wary of associated operations when considering lump sum gifts linked to reversions to family members. Page 8 of 12

9 Certainly, if a home reversion enabled an individual to raise their net income substantially then they could gift out of income substantially more each year than the 3,000 personal allowance ( 6,000 per couple). If lump sum gifts are made to children well in advance of any family reversion then once 7+ years had elapsed those gifts would fall out of account. Likewise, a reversion of 100% of the property only leads to say 40% to 60% of the property value by way of a lump sum. Better the children pay 18% / 28% CGT tax rather than 40% IHT. Remember, that the beneficial IHT effects of a reversion are instant, no need to wait for 7 years (or 2 years for a business proposition). 9.4 Stamp Duty Land Tax (SDLT) This should not affect equity release as the purchaser pays it, however, care needs to be taken where partners are not married and there is a mortgage valued in excess of 125,000. Likewise a reversion to a family member would create a tax liability. 10. THE EFFECT OF EQUITY RELEASE ON BENEFITS 10.1 State Pension Credit (SPC) (Was Minimum Income Guarantee Tax Free) SPC is paid to those above state retirement age. It is designed to top up your pension income to a minimum level. For single pensioners the target income is a week (2015/16) and for couples the figure is per week. Where a claimant has in excess of 10,000 of savings it is assumed that every 500 generates 1 a week. So if you have 15,000 of savings it is assumed you are getting income of 10 a week. If you have private income of over ( as a couple) then you can claim an extra per week benefit ( for a couple). Whilst the calculations are complicated at it s simplest the maximum benefit is: Single Couple State pension Pensions Credit Maximum Top Up More of less can be paid according to circumstances. SPC is a genuine safety net which our clients should not need to call upon, however, the relevant issue for equity release plans is that income from equity release will affect the guarantee and if a lump sum is taken then for every 1,000 of savings above 10,000 they will be treated as receiving 104 a year in income. Page 9 of 12

10 This benefit will cease for new applicants when the universal pension starts in 2017 at 150 a week in 2015 terms Disabled Persons Allowances These benefits can be increasingly difficult to claim successfully Disability Living Allowances (Tax Free) Are not means tested and will pay out care and mobility elements as long as you are not on other means tested benefits Attendance Allowance (Tax Free) This benefit is paid to you if you need help with personal care or you require supervision to avoid danger to yourself. You must be sixty-five years old or over to claim Attendance Allowance. The benefit is paid at one of two rates a lower rate for those who require care either during the day or the night and a higher rate for those who also require care day and night. The benefit levels are usually reviewed in April and the payment is made directly to your bank account. Anyone in a nursing home should qualify for Attendance Allowance and many in later life also benefit. There are two levels of benefit dependent upon the degree of help needed current rates (2015) are per week at the lower rate and per week at the higher level. Attendance Allowance and its equivalent benefit for pre retired people (dependants living allowance or DLA prior to 2013, Personal Independence payment post 2013) are not taxable and do not affect means tested benefits Invalid Care Allowance (Tax Free) Means tested to savings and income Disabled Person s Tax Credits (Tax Free) Is means tested to income and savings and you have to have enough national insurance (NI) credits to qualify and you have to work 16 hours a week Incapacity Benefit (Taxable) Is subject to sufficient NI contributions and only paid to age Severe Disablement Allowance (Tax Free) Ceased in 2001, not means tested and only available to existing claimants Funeral Payment (Tax Free) Page 10 of 12

11 The one off State benefit to defray costs of a funeral is means tested in a similar way to the other benefits Council Tax Reduction (Tax Free) This is a Local Authority benefit so the rules will vary however generally speaking if you have more than 16,000 of savings you cannot get it unless you are receiving pensions credit or income support (which you would not get with more than 16,000 savings anyway). Strangely, if you are married you cannot get a second person s benefits but if you are cohabiting you can. The benefit is progressive, but can be up to 100% of your council tax bill which for some is the biggest bill they have. Obviously, if you undertake an equity release and end up with more than 16,000 it could be a disaster from a council tax perspective Housing Grants Again, these are a Local Authority benefit. They are available for property repairs, improvement, conversions and to assist the disabled. They are provided (subjectively between authorities) according to income assets, needs and outgoings. Clearly, if you do an equity release you will stand less chance of receiving these grants. Suffice to say if you are eligible for any of the means tested benefits now, you are unlikely to still qualify after undertaking an equity release plan and you must weigh up the cost of losing benefits against the benefits of equity release. 11. LONG TERM CARE (LTC) COSTS AND EQUITY RELEASE PLANS We have separate notes on the cost of long term care however for the purpose of this guide it is worth highlighting the fact that the Local Authority usually offers (not always!) a deferred payment scheme for nursing and residential care home fees which would (currently at least) be interest free rather than commercially charged. Since the Care Act 2014 the Local Authority has to offer such schemes but can charge interest at above inflation rates. Clearly, if you have sold your property then that asset is not available to the Local Authority. If you have sold the property on a commercial basis then it should not matter (but this has not been tested) whether you have sold it to an institution or your children. So, one can see an added advantage to a family home reversion scheme planned well ahead of any LTC needs. On the other hand by undertaking an equity release plan may have to pay all the costs of LTC whilst at the same time you receive no means tested State benefits until your equity release proceeds run out. Many home reversion plans insist your property is sold if the last occupant goes permanently into a nursing home and there would seem little point in allowing a mortgage to roll up under the same circumstances. 12. BORROWING OR REVERSION? The following is a quick guide to the two alternatives: Page 11 of 12

12 Borrowing You get a smaller payment You may lose means tested benefits You retain ownership of your home You can choose from different interest options Cash received can be used for any means Can (rarely) pay interest or defer same Can repay loan Can stay in home until unable to do so Can (usually) transfer to a new home May be able to sub lease property Keeps increasing value of property in estate Escalating debt on estate (roll up mortgage) Can use drawdown Can (usually) take out second loans Reversion You can get a larger lump sum You may lose means tested benefits You sell your home and become a tenant No interest to pay as you have sold your home Cash received can be used for any means No interest to pay as you have sold your home Cannot (usually) buy back property Can stay in home until unable to do so Cannot (usually) transfer, you cannot move home Never able to sub lease property Loses all of property value from estate Loses all of property value from estate Can sell property in stages Cannot take out further loans as property sold Please note that whilst every effort is made to ensure that the information contained within this explanation is correct, these notes are by necessity brief and of a generalised nature. Clients should seek specific personalised advice prior to undertaking any arrangement. These notes were last updated in August Whilst we have done our best to ensure they are current to this date laws and options are changing constantly so always check before action. E.&.O.E. Page 12 of 12

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended SOLLA adviser we are frequently asked to advise on home income/equity release plans. These notes are designed to provide some general background to clients

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

Equity release. A guide for those considering unlocking the value in their home

Equity release. A guide for those considering unlocking the value in their home Equity release A guide for those considering unlocking the value in their home Purpose Equity release is a big decision that will affect the rest of your life. It will mean giving up full control over

More information

Equity Release Guide. www.seniorissues.co.uk

Equity Release Guide. www.seniorissues.co.uk Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY

More information

Are you or your parents thinking about taking out an Equity Release product?

Are you or your parents thinking about taking out an Equity Release product? Equity Release Are you or your parents thinking about taking out an Equity Release product? Why take out an equity release plan? So what is an Equity Release plan? Who can take out an Equity Release Scheme?

More information

Planning for Care Costs. The Options in Scotland

Planning for Care Costs. The Options in Scotland Planning for Care Costs The Options in Scotland For more information or to speak to one of our trained advisers please telephone our team on 0800 152 2037 Solicitors For Older People Scotland 1/7/2012

More information

EQUITY RELEASE GUIDE. Everything you need to know about equity release.

EQUITY RELEASE GUIDE. Everything you need to know about equity release. EQUITY RELEASE GUIDE Everything you need to know about equity release. An informative guide from the equity release specialists The informative guide to equity release... Equity release has come a long

More information

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co.

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co. Equity Release Guide 0800 612 5749 www.therightequityrelease.co.uk Helping you make the right decision nationwide service all lenders available personal visits 1 Welcome to The Right Equity Release Who

More information

A Guide to Releasing Capital from your Home

A Guide to Releasing Capital from your Home Advice for older people A Guide to Releasing Capital from your Home Advice provided by Advice for older people FirstStop Advice brings together the expertise of some of the most trusted and respected organisations

More information

Reverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good.

Reverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good. Reverse Mortgage Financial freedom to do the things you ve always wanted That s what we re here for. Here for good. Contents 2 The freedom of a Reverse Mortgage 3 Product overview 4 About Reverse Mortgages

More information

The Deferred Payments Scheme. An information leaflet for home owners, paying for residential or nursing home care

The Deferred Payments Scheme. An information leaflet for home owners, paying for residential or nursing home care The Deferred Payments Scheme An information leaflet for home owners, paying for residential or nursing home care What is the Deferred Payment Scheme? The deferred payment scheme is designed to help if

More information

ALL YOU NEED TO KNOW.

ALL YOU NEED TO KNOW. LIFETIME MORTGAGE LIFETIME MORTGAGES ALL YOU NEED TO KNOW 1 ALL YOU NEED TO KNOW. 2 LIFETIME MORTGAGES ALL YOU NEED TO KNOW CONTENTS 1. IntrODUCTION 2. AbOUT lifetime mortgages 3. FeaturES of our lifetime

More information

Roll-up Lifetime Mortgage Lump Sum Plus Lifetime Mortgage

Roll-up Lifetime Mortgage Lump Sum Plus Lifetime Mortgage Lifetime Mortgages Roll-up Lifetime Mortgage Lump Sum Plus Lifetime Mortgage Using the value in your home for a better retirement Just Retirement s Lifetime Mortgages Who are we? Just Retirement Limited

More information

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE? WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

More information

Certificate in Regulated Equity Release

Certificate in Regulated Equity Release Unit 1: Fundamentals of Equity Release Certificate in Regulated Equity Release Attainment Level knowledge of: K1 Definition of a Home Reversion (HR) plan & alternative methods of equity release/capital

More information

Paying for your Care in a Home The Council s Deferred Payment Scheme. Introduction

Paying for your Care in a Home The Council s Deferred Payment Scheme. Introduction Paying for your Care in a Home The Council s Deferred Payment Scheme Introduction Our leaflet A Guide to entering a care home explains how you can ask the Council to help you with the cost of your care

More information

Proposed Information Statement Reverse Mortgage. Things you should know about your reverse mortgage

Proposed Information Statement Reverse Mortgage. Things you should know about your reverse mortgage Page 1 of 7 Proposed Information Statement Reverse Mortgage Things you should know about your reverse mortgage This statement is provided to you because reverse mortgages operate differently to other credit

More information

Mortgage & Equity Release Guide

Mortgage & Equity Release Guide Edward Wilson Financial Services OVERVIEW Experience We have been advising clients since 1994, and have a wealth of experience for which there is no substitute. As an appointed representative of the Sesame

More information

Equity release using your home to get a cash sum

Equity release using your home to get a cash sum Equity release using your home to get a cash sum for independent information About us We are an independent watchdog set up by the Government to: regulate firms that provide financial services; and help

More information

LIFETIME MORTGAGE LUMP SUM

LIFETIME MORTGAGE LUMP SUM LIFETIME MORTGAGE LUMP SUM Terms and Conditions (version 5) This is an important document. Please keep it in a safe place. LV= Lifetime Mortgage lump sum Terms and Conditions Welcome to LV=, and thank

More information

Information on the Council s Deferred Payments Scheme

Information on the Council s Deferred Payments Scheme Information on the Council s Deferred Payments Scheme What is the Deferred Payments Scheme? The Deferred Payments Scheme is designed to help you if you have been assessed as having to pay the full cost

More information

Commissioned by. Written by. Supported by

Commissioned by. Written by. Supported by Use of Housing Equity for Beginners A self training module Commissioned by Written by Supported by About this training module This self training module is for people who want to understand the basic ideas

More information

Chadwick s. Equity Release

Chadwick s. Equity Release c Independent Chadwick s Financial Advisers Equity Release Contents Chadwick s IFA Page 4 Equity Release Page 5 Lifetime Mortgages Page 6 Home Reversion Schemes Page 7 Considerations Pages 8&9 Safe Guards

More information

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives? Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime

More information

Lump Sum Lifetime Mortgage Product Summary

Lump Sum Lifetime Mortgage Product Summary Lump Sum Lifetime Mortgage Product Summary This document is intended to provide you with an introduction to our Lump Sum Lifetime Mortgage. Aims The lump sum lifetime mortgage provides you with a cash

More information

Deferred Payment Scheme. This leaflet gives a guide to Derbyshire County Council s Deferred Payment Scheme

Deferred Payment Scheme. This leaflet gives a guide to Derbyshire County Council s Deferred Payment Scheme Deferred Payment Scheme This leaflet gives a guide to Derbyshire County Council s Deferred Payment Scheme Contents What is the Deferred Payment Scheme? Page 3 To apply for a Deferred Payment you must...

More information

Our Home Reversion Plan. Enjoy your retirement by unlocking the value of your home

Our Home Reversion Plan. Enjoy your retirement by unlocking the value of your home Our Home Reversion Plan Enjoy your retirement by unlocking the value of your home I can now have the garden I ve always wanted. 1 Bridgewater Equity Release Limited the Home Reversion Plan experts Bridgewater

More information

Your Mortgage Guide. The Exchange. Property Services Mortgage Services Letting & Management Services Conveyancing Services

Your Mortgage Guide. The Exchange. Property Services Mortgage Services Letting & Management Services Conveyancing Services The Exchange Property Services Mortgage Services Letting & Management Services Conveyancing Services Your Mortgage Guide Contents: Introduction... 3 The Financial Services Authority (FCA)... 3 What is

More information

Everything you need to know about equity release.

Everything you need to know about equity release. Everything you need to know about equity release. An informative guide from the equity release specialists Welcome to the Retiredom guide to equity release. Equity release has come a long way since regulation

More information

Information for people in residential care with property

Information for people in residential care with property Information for people in residential care with property If you are assessed as eligible for permanent residential care and you have a property and your other capital is valued at less than 23,250 the

More information

Contents. Meeting the Costs of Live at Home Care & Nursing Funding Options Handbook. Funding Options 2. Private Funding 3

Contents. Meeting the Costs of Live at Home Care & Nursing Funding Options Handbook. Funding Options 2. Private Funding 3 Meeting the Costs of Live at Home Care & Nursing Funding Options Handbook Contents Funding Options 2 Private Funding 3 Equity Release Schemes Home Reversion Plans 3 Full Reversion Plans 4 Partial Reversion

More information

A Guide to. Small Self Administered Pension Schemes (SSAS)

A Guide to. Small Self Administered Pension Schemes (SSAS) A Guide to Small Self Administered Pension Schemes (SSAS) Prepared by: John Hebblethwaite APFS CFP cm MIoD FRSA Certified Chartered Financial Planner Managing Director April 2014 Contents Introduction...

More information

Help to Buy Buyers Guide

Help to Buy Buyers Guide Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy Page 1 of 27 Key information Buyers using this scheme must provide security in the form of a second

More information

For expert advice call 01494 451441

For expert advice call 01494 451441 Protection Planning Life and Protection Insurance The cost of insurance, particularly life insurance has fallen over recent years, whilst the quality of cover has in many cases increased. With this in

More information

Deferred Payment Agreement Factsheet

Deferred Payment Agreement Factsheet Deferred Payment Agreement Factsheet What is a Deferred Payment Agreement? Deferred Payment Agreements are designed to help you if you have been assessed as having to pay the full cost of your residential

More information

Inheritance tax planning and the family home

Inheritance tax planning and the family home Inheritance tax planning and the family home An overview and options for lifetime planning technical factsheet Introduction Leading tax and legal experts agree that a family home should only form part

More information

KEY GUIDE. Investing for income when you retire

KEY GUIDE. Investing for income when you retire KEY GUIDE Investing for income when you retire Planning the longest holiday of your life There comes a time when you stop working for your money and put your money to work for you. For most people, that

More information

Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

More information

Deferred Payment Agreements

Deferred Payment Agreements Deferred Payment Agreements Paying for your Care in a Home Barnet Council s Deferred Payment Scheme What is a Deferred Payment Agreement? A Deferred Payment Agreement is an arrangement with the Council

More information

Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY

Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY FACT SHEET NO. 10 NORTHERN IRELAND What is bankruptcy? Bankruptcy is a way of dealing with debts that you cannot pay.

More information

KEY GUIDE. Financial protection for you and your family

KEY GUIDE. Financial protection for you and your family KEY GUIDE Financial protection for you and your family Protecting what matters most Life and health insurance protection underpins most good financial planning. These types of insurance can ensure that

More information

Retirement Mortgage Product summary

Retirement Mortgage Product summary Retirement Mortgage Product summary The Retirement Mortgage from Hodge Lifetime provides you with a flexible way to borrow money in retirement. A legal charge is secured on your home. AIMS The Retirement

More information

CAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985

CAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 CAVENDISH Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 EQUITY RELEASE The Essential Guide INDEX Welcome to Cavendish Equity Release 3 How can Equity Release be used? 4 Why is specialist advice

More information

Council of Mortgage Lenders Equity release leaflet unlocking the value of your home

Council of Mortgage Lenders Equity release leaflet unlocking the value of your home Council of Mortgage Lenders Equity release leaflet unlocking the value of your home What is equity release? Equity is the difference between any mortgage you may have and the value of your home. Equity

More information

Wiltshire Council PAYING FOR RESIDENTIAL OR NURSING CARE WHERE PEOPLE OWN THEIR PROPERTY INTERIM ADVICE PENDING NEW POLICY

Wiltshire Council PAYING FOR RESIDENTIAL OR NURSING CARE WHERE PEOPLE OWN THEIR PROPERTY INTERIM ADVICE PENDING NEW POLICY Wiltshire Council PAYING FOR RESIDENTIAL OR NURSING CARE WHERE PEOPLE OWN THEIR PROPERTY INTERIM ADVICE PENDING NEW POLICY 2015 2016 Please note, this is interim guidance pending changes to the Councils

More information

Your retirement could have even more going for it

Your retirement could have even more going for it Your retirement could have even more going for it A straightforward guide to equity release For no obligation advice: call 0800 015 0993 www.justretirementsolutions.com Contents Imagine what you could

More information

What is the Deferred Payments Scheme? Help with paying for your care

What is the Deferred Payments Scheme? Help with paying for your care What is the Deferred Payments Scheme? Help with paying for your care The Deferred Payment Scheme can help you pay for your care home fees, if you own your home and cannot afford to pay the full fee, as

More information

Deferred Payment Scheme Information and guidance 2015/16

Deferred Payment Scheme Information and guidance 2015/16 Deferred Payment Scheme Information and guidance 2015/16 What is the Deferred Payment Scheme? The Deferred Payment Scheme is designed to prevent people from having to sell their home, in their lifetime,

More information

Reverse Mortgages A Source of Funds for Retirement?

Reverse Mortgages A Source of Funds for Retirement? Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a

More information

LIFETIME MORTGAGE LUMP SUM

LIFETIME MORTGAGE LUMP SUM LIFETIME MORTGAGE LUMP SUM Terms and Conditions (version 4) This is an important document. Please keep it in a safe place. LV= Lifetime Mortgage lump sum Terms and Conditions Welcome to LV=, and thank

More information

Blackburn with Darwen Borough Council Deferred Payments Scheme

Blackburn with Darwen Borough Council Deferred Payments Scheme Blackburn with Darwen Borough Council Deferred Payments Scheme A guide to Deferred Payments paying for residential care or nursing care if you own your own home. 1 What is the Deferred Payments Scheme?

More information

Equity Release An easy to understand guide just for you

Equity Release An easy to understand guide just for you TRuE BEARing ChARTEREd e Right direction for Financial Advice Equity Release An easy to understand guide just for you True Bearing Chartered 2 Buckshaw Court, East Terrace Business Park Euxton Lane, Euxton,

More information

Equity Release. Standards for Appropriate Examinations. AES3/011206 Financial Services Skills Council 2006 1

Equity Release. Standards for Appropriate Examinations. AES3/011206 Financial Services Skills Council 2006 1 Equity Release Standards for Appropriate Examinations AES3/011206 Financial Services Skills Council 2006 1 The Standards The Standards contain the following information: 1. The learning outcomes that must

More information

Deferred Payments. A guide to. Paying for residential care if you own your home

Deferred Payments. A guide to. Paying for residential care if you own your home Deferred Payments A guide to Paying for residential care if you own your home What is the deferred payment scheme? If you are a home owner moving to residential care this scheme is designed to assist you

More information

Talk to us first... Equity Release. Mortgages & Finance. Investments, Pensions & Personal Protection

Talk to us first... Equity Release. Mortgages & Finance. Investments, Pensions & Personal Protection Talk to us first... Mortgages & Finance Equity Release Investments, Pensions & Personal Protection Why talk to? As Independent Financial Advisers we will work closely with you to help plan your finances

More information

Paying for your own residential care

Paying for your own residential care Paying for your own residential care June 2015 Page 1 Contents How will I know whether my needs have to be met by residential care?... 3 How do I find a home?... 3 How much will I have to pay towards the

More information

Thinking of buying? Your right to buy your council home

Thinking of buying? Your right to buy your council home Thinking of buying? Your right to buy your council home Buying your home is probably the biggest financial decision you will ever make so it s important to consider whether it is the right choice for you.

More information

Deferred Payments. Information for people moving into residential care who own a property

Deferred Payments. Information for people moving into residential care who own a property Deferred Payments Information for people moving into residential care who own a property Deferred Payments The Deferred Payment Scheme is designed to help you if you have been assessed as having to pay

More information

A Guide to Equity Release in Retirement

A Guide to Equity Release in Retirement A Guide to Equity Release in Retirement 1. Introduction For the retirement you deserve 2. What is Equity Release? 3. Equity Release Plans The options available to you 4. The Application Process 5. Questions

More information

Keeping up with mortgage repayments

Keeping up with mortgage repayments Keeping up with mortgage repayments This information is an extract from the booklet Housing costs, which is part of our Financial guidance series. You may find the full booklet helpful. We can send you

More information

Reverse Mortgages: Reversal of Fortune?

Reverse Mortgages: Reversal of Fortune? Reverse Mortgages: Reversal of Fortune? Certainly The Fonz would not lead us astray. Nor would Senator Fred Thompson. After all, he ran for President of the United States and played the President in several

More information

Customer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need

Customer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need Customer Guide to lifetime mortgages more 2 choose a range of lifetime mortgage plans to suit every need From one of the UK s largest retirement lending specialists Please speak to your adviser for further

More information

Briefing Paper on Equity Release

Briefing Paper on Equity Release COUNCIL of MORTGAGE LENDERS Briefing Paper on Equity Release What is equity release? 1. Equity is the difference between any mortgage you may have and the value of your home. Equity release is a way of

More information

Use your home to your advantage. A guide to equity release

Use your home to your advantage. A guide to equity release Use your home to your advantage A guide to equity release 2 A guide to equity release Introducing Retirement Advantage Previously known as MGM Advantage and Stonehaven, we are a wellestablished company

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

USA Reverse. Learn the Facts about Reverse Mortgages. Danny Glover - Human Rights Activist

USA Reverse. Learn the Facts about Reverse Mortgages. Danny Glover - Human Rights Activist Learn the Facts about Reverse Mortgages Danny Glover - Human Rights Activist Single-purpose Reverse Mortgages Single-purpose reverse mortgages are the least expensive option. They re offered by some state

More information

Deferred Payment Agreement Scheme

Deferred Payment Agreement Scheme Adult Social Care and Health Deferred Payment Agreement Scheme Information about the Council s Deferred Payment Agreement Scheme an option to help you manage care home costs if you own your property www.reading.gov.uk/carecharges

More information

Welcome to. OneFamily

Welcome to. OneFamily OneFamily Lifetime Mortgages 1 Welcome to OneFamily Welcome to our OneFamily Lifetime Mortgages. This brochure acts as an easyto-digest introduction to lifetime mortgages and provides you with a summary

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

Have you heard about Open Market HomeBuy?

Have you heard about Open Market HomeBuy? Have you heard about Open Market HomeBuy? A guide to buying a home on the open market using an equity loan Contents What is Open Market HomeBuy? 3 Who is eligible for the scheme? 4 How does Open Market

More information

FIAS factsheet 4 October 2015

FIAS factsheet 4 October 2015 Deferred payment agreements in Suffolk Please note we strongly recommend that you take independent financial advice if you are considering using the deferred payment scheme from Suffolk County Council.

More information

People moving into a care home who have a property Information sheet D4 April 2016

People moving into a care home who have a property Information sheet D4 April 2016 People moving into a care home who have a property Information sheet D4 April 2016 This information sheet explains your rights as a homeowner if you are moving into a care home with financial support from

More information

Planning and implementing property investment strategies for your children's long-term benefit

Planning and implementing property investment strategies for your children's long-term benefit Planning and implementing property investment strategies for your children's long-term benefit This is an excerpt from Lawpack s book Property Investment for your Children. To find out more about making

More information

A guide to equity release

A guide to equity release Enjoying financial freedom in retirement: Enjoying financial freedom in retirement: A guide to equity release A guide to equity release Many people see equity release as a way to ensure a comfortable retirement.

More information

Lump Sum Lifetime Mortgage Terms and Conditions. Version 1

Lump Sum Lifetime Mortgage Terms and Conditions. Version 1 Lump Sum Lifetime Mortgage Terms and Conditions Version 1 INTRODUCTION Thank you for choosing Hodge Lifetime. We hope that your lifetime mortgage makes a positive difference during your retirement. This

More information

Tax Planning Via the Family Home

Tax Planning Via the Family Home Take a typical example, Arthur and his wife Angela. Their circumstances are summarised in the box. They have a heavy IHT liability when they both die (or at least, their children do); what can they do?

More information

A Guide to. Self Invested Personal Pension Schemes (SIPPS)

A Guide to. Self Invested Personal Pension Schemes (SIPPS) A Guide to Self Invested Personal Pension Schemes (SIPPS) Prepared by: John Hebblethwaite APFS CFP Chartered Financial Planner Managing Director May 2011 Contents Introduction... 3 Eligibility... 4 Contributions...

More information

GUIDELINES FOR EQUITY RELEASE SCHEMES

GUIDELINES FOR EQUITY RELEASE SCHEMES GUIDELINES FOR EQUITY RELEASE SCHEMES The Conveyancing Committee of the Law Society of Ireland has developed these guidelines in order to assist practitioners when asked to advise on Equity Release Schemes.

More information

IT S MORTGAGE REVERSE A SIGN OF THE TIMES

IT S MORTGAGE REVERSE A SIGN OF THE TIMES IT S A SIGN OF THE TIMES REVERSE MORTGAGE UNLOCK THE EQUITY IN YOUR HOME If you want the financial freedom to spend your retirement how you choose, with independence and dignity, you should talk to us.

More information

What is the Deferred Payments Scheme?

What is the Deferred Payments Scheme? What is the Deferred Payments Scheme? The Deferred Payments Scheme is designed to help you if you have been assessed as having to pay the full cost of your residential care but cannot afford to pay the

More information

IT S MORTGAGE REVERSE A SIGN OF THE TIMES

IT S MORTGAGE REVERSE A SIGN OF THE TIMES IT S A SIGN OF THE TIMES REVERSE MORTGAGE UNLOCK THE EQUITY IN YOUR HOME If you want the financial freedom to spend your retirement how you choose, with independence and dignity, you should talk to us.

More information

Version 0.1 Adult Social Care Deferred Payment Policy Issued: April 2015

Version 0.1 Adult Social Care Deferred Payment Policy Issued: April 2015 Adult Social Care Deferred Payment Policy 1 Introduction 1.1 This Policy details how Deferred Payment Agreements (DPAs) are to be operated by Rochdale Council from April 2015. 1.2 When a person enters

More information

THE RESPONSIBLE EQUITY RELEASE GUIDE. Everything you need to know about equity release.

THE RESPONSIBLE EQUITY RELEASE GUIDE. Everything you need to know about equity release. THE RESPONSIBLE EQUITY RELEASE GUIDE Everything you need to know about. An informative guide from the specialists Welcome to the Responsible guide to. Equity release has come a long way since regulation

More information

Saffron Building Society Mortgages Savings Investments Insurance Loans. Residential mortgage conditions. www.saffronbs.co.

Saffron Building Society Mortgages Savings Investments Insurance Loans. Residential mortgage conditions. www.saffronbs.co. Saffron Building Society Mortgages Savings Investments Insurance Loans Residential mortgage conditions www.saffronbs.co.uk 0800 072 1100 Saffron Building Society Residential Mortgage Conditions (England

More information

LEVEL 3 - UNIT 15 - THE PRACTICE OF LAW FOR THE ELDERLY CLIENT SUGGESTED ANSWERS JANUARY 2011

LEVEL 3 - UNIT 15 - THE PRACTICE OF LAW FOR THE ELDERLY CLIENT SUGGESTED ANSWERS JANUARY 2011 LEVEL 3 - UNIT 15 - THE PRACTICE OF LAW FOR THE ELDERLY CLIENT SUGGESTED ANSWERS JANUARY 2011 Note to Candidates and Tutors: The purpose of the suggested answers is to provide students and tutors with

More information

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 What is Help to Buy? Help to Buy is equity loan assistance to home buyers from the Homes

More information

Care Home Fees: Paying them in Scotland

Care Home Fees: Paying them in Scotland Guide Guide 52 Care Home Fees: Paying them in Scotland Living in a care home can be expensive. Some people are able to pay their own care home fees, but others may need financial support from their local

More information

Deferred Payment Agreement Charging

Deferred Payment Agreement Charging Deferred Payment Agreement Charging What is a Deferred Payment Agreement? A Deferred Payment Agreement is an arrangement with the council that will enable you to use the value of your home to help pay

More information

When Finances Go Wrong - Debt

When Finances Go Wrong - Debt When Finances Go Wrong - Debt Very few people now have no debt at all after all a mobile phone contract, or your rent/mortgage are both debts. It becomes an issue for people when they cannot meet the payments

More information

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking The New Tool For Retirement Income Planning Presented by: Becky Bell, Regional VP, Mortgage Banking Why Consider a Reverse Mortgage? Allows Clients to Take a Dormant Asset (Home Equity) and Put it to Work

More information

Remortgaging it may be your best decision

Remortgaging it may be your best decision Remortgage Guide Remortgaging it may be your best decision Why do I need to consider a remortgage? For most homeowners, a mortgage is probably your largest financial commitment so it s essential to ensure

More information

Making the most of your retirement

Making the most of your retirement Making the most of your retirement A guide to equity release and our advice service Provided by Contents Welcome from the Age UK Group 3 Do more with your retirement 4 What is equity release? 5 Is equity

More information

Residential mortgages general information

Residential mortgages general information Residential mortgages general information Residential mortgages general information 2 Contents Who we are and what we do 2 Forms of security 2 Representative Example 2 Indication of possible further costs

More information

Pathways Shared Equity Loan

Pathways Shared Equity Loan Department of Housing and Public Works Pathways Shared Equity Loan Become a home owner by purchasing a share of the property you are renting Questions and Answers Booklet Great state. Great opportunity.

More information

Shared Home Investment Plan Limited. because life is worth living

Shared Home Investment Plan Limited. because life is worth living Shared Home Investment Plan Limited because life is worth living About S.H.I.P.? Shared Home Investment Plan Limited (S.H.I.P.) is an Irish company specialising in home equity release plans for the over

More information

Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

More information

Deferred Payment Scheme Information Leaflet

Deferred Payment Scheme Information Leaflet Deferred Payment Scheme Information Leaflet What is the Deferred Payments Scheme? The Deferred Payments Scheme is designed to help you if you have been assessed as having to pay the full cost of your residential

More information

Your Right to Buy Your Home: A guide for tenants of councils, new towns and registered social landlords including housing associations

Your Right to Buy Your Home: A guide for tenants of councils, new towns and registered social landlords including housing associations Your Right to Buy Your Home: A guide for tenants of councils, new towns and registered social landlords including housing associations Your Right to Buy Your Home: A guide for tenants of councils, new

More information

IT S LIFETIME LOAN A SIGN OF THE TIMES AUSTRALIAN SENIORS FINANCE. The Home Equity Release Specialist

IT S LIFETIME LOAN A SIGN OF THE TIMES AUSTRALIAN SENIORS FINANCE. The Home Equity Release Specialist IT S A SIGN OF THE TIMES LIFETIME LOAN AUSTRALIAN SENIORS FINANCE The Home Equity Release Specialist UNLOCK THE IN YOUR EQUITY HOME If you want the financial freedom to spend your retirement how you choose,

More information