Estate Release Advice UK - Top 12 Tips

Transcription

1 Not approved for use with customers Equity Release Partnership Programme The growth sector for the next decade t: e: Units 21-11, 4A Mills Bakery, Royal William Yard, Plymouth, PL1 3GE

2 Equity release set to grow The growth sector for the next decade : 3.9 million eligible candidates. 45% of retirees with inadequate income. 907bn of housing wealth for pensioners. Average UK house price doubled since % of population aged over 65 in Set to be 23% by Equity release can provide capital for any purpose without strict affordability critera and repayment commitments.

3 Equity release at a glance Equity release involves a lifetime mortgage with no monthly repayments to be made. The mortgage is designed to run for the lifetime of the customer and interest rolls up instead of being paid. There is an interest rate fixed for life, currently around 5.5% to 7%. The customer maintains 100% home ownership and can move the mortgage to another property if they wish or can pay it back at any time. When the customer passes away, the mortgage plus interest is redeemed from the value of the property, often offset by inheritance tax savings. Regulated by the Financial Conduct Authority.

4 Who releases equity? Inheritance Tax Mitigation Funding deposits for first-time-buyer family member Home Improvements Clearing mortgages to free up income Clearing credit card debts to save interest charges Purchasing long term care plans/insurances Buying a second home or a buy to let Keeping businesses afloat with working capital Helping family out with large debt lebels Funding a full & final settlement of debt Escaping debt management plans Holidays and cruises Funding investment opportunities Paying for weddings of family members Drawing a regular income in retirement Paying for children/grandchildren s tuition fees

5 How can you be active? Existing Clients 1) Client reviews will indentify if circumstances have changed in a way that brings equity release into play. 2) Newsletters sent to older clients covering topics such as income in retirement should get your phone ringing. 3) Seminars help to strengthen and reinforce client relationships while building selling opportunities. 4) ing clients is a good way to keep in contact with them and gives you an opportunity to tailor messages around generating more income in retirement. 5) Referrals are a great way to build equity release opportunities - epsecially if your clients have parents who need financial advice. New Clients 1) Advertising - e.g in local press, club magazines (e.g bowling) and charity publications (Age Concern). 2) Editorials e.g write an article or column for your local paper or for an affinity group magazine. 3) Seminars offer the perfect opportunity to talk to people who have expressed an interest in equity release. 4) Referrals from your exisiting clients will probably be the best quality leads. 5) Direct mail campaign e.g from a bought list. 6) Professional connections e.g solicitors - offer equity release and you will stand out from the crowd. 7) Other introducers e.g estate agents. 8) Non authorised IFAs who may have clients who need equity release advice. 9) Networking offers opportunities provided you have the right mindset! 10) Online Networking - join an e-forum or one of the many growing numbers of Social Networks to discover new clients and professional introducers. 11) Blogging - the new way for your expertise to be read by prospects, clients and journalists. 12) Podcasting - create short audio messages to communicate with your target audience. 13) Webinar - the online version of a seminar. Promote your webinar in all your electronic and proper communications with clients.

6 Why introduce to us? We guarantee no cross selling. You earn 70% of the procuration fee for the first 3 introductions and then 55% from then onwards. You can spend more time advising on your expert subjects whilst still making the most of equity release opportunities. No professional indemnity risk to you. Access to our marketing materials with the high impact Responsible branding. We give your clients access to our exclusive deals from providers. Our sophisticated IT system keeps you updated with the progress of any case as it happens and provides reports so you can analyse the succeess of your introductions. Your client s initial contact will be with a fully qualified adviser - no call centres & no call handlers. We will offer your client independent, unbiased advice that takes into account all of the products on the market. We have access to great rates from specialist equity release solicitors - saving your client money. Your client will have the safety net of advice signed off by two advisers. Your client will have the choice of face-to-face or telephone advice. Your client s enquiry will be dealt will promptly and courteously. Over 100 years of experience in the equity release advice market. Sit in on our meetings with your client or listen to recorded telephone conversations.

7 Providers We have a large pool of lenders including household names such as:

8 The advice process It is important that whoever enquires about equity release gets access to high quality advice from advisers who have arranged a large number of plans of all varieties. Responsible have over 100 years collective experience in the industry and follow a strict Double Sign Off process where two advisers will read through and sign any recommendations. Responsible always prefer to visit the client face-to-face but have the experience to provide telephone advice should the customer prefer. Often, two home visits are necessary to ascertain and reaffirm the client s goals. All visits are free and carry no obligation - we only charge for our advice should the client go through with the plan. All introducers are welcome to sit in on our visits and we encourage the attendance of family members. Most clients apply for a plan within 2-3 weeks of enquiring and then it can take 4-6 weeks to complete. Others may wait until certain milestones such as retirement or birthdays.

9 We look forward to hearing from you... We would like to invite you to share in this growth sector but first and foremost with a sensible, measured and risk-free first step. Responsible Equity Release have an introduction scheme, allowing you to refer potential equity release clients to us, learn a lot along the way and then decide if equity release is something you may consider licensing your firm to do or if you are happy to continue receiving market-leading introduction fees. For more information, please get in touch with us: Steven Wilkie - Managing Director e: sw@responsible.org.uk ~ t: Noel Abbott - Operations Manager e: na@responsible.org.uk ~ t:

10 Case Study - Prof.A******** OBE Professor A enquired with Responsible with two specific goals: 1) To help his two daughters get on the property ladder with gifts of 60,000 each. 2) To top up his income. A full fact-find was completed including the discussion of goals, priorities, alternatives, assets & liabilities. It was decided after this discussion that goal number 2 could be achieved using his current assets and goal number 1 could be achieved using equity release - specifically a Roll-up Drawdown Lifetime Mortgage. As one of the daughters was still looking for a house to buy, Responsible recommended a plan whereby her share could be put in an interest-free drawdown reserve ready to draw upon when needed. The other daughter received her 60,000 gift 5 weeks after application.

11 Case Study - Mr.I******** Mr.I is a widower whose wife used to manage the family finances. Retiring in 18 months time with no savings and currently off work due to an operation, Mr I wanted to secure financial freedom, buy a new car and replace his boiler. A responsible adviser went to see Mr.I in the comfort of his home to discuss his needs in depth. As Mr.I was reliant on his wife for budget planning, our adviser went through a budget planner with him, discovering that even with his loans cleared he would face a shortfall in retirement. Having discussed alternatives such as down-sizing, budgeting, help from family, renting a room & conventional lending, Mr.I was keen to proceed with an equity release plan as the most viable solution to his retirement needs. Responsible applied for a 16,000 release from LV= with 30,000 in an interest free reserve guaranteed for 15 years should Mr.I have any future income needs.

12 t: e: Units 21-11, 4A Mills Bakery, Royal William Yard, Plymouth, PL1 3GE