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 60 age group. The company was formed in November 2002, and is run by an experienced management team who understand the needs and wishes of people like you. S.H.I.P. is also a registered business name of Seniors Finance Ireland Limited (company number 393642) a wholly owned subsidiary of Shared Home Investment Plan Limited. Our commitment is to provide equity release plans that enable you and senior citizens like you to use the considerable value built up in your home to obtain a tax free lump sum to enhance your lifestyle in your retirement years. You are free to use the funds released from your home in any manner you wish, in order to bring peace of mind, enjoyment and a more rewarding lifestyle in retirement. What is equity release for senior citizens? We are all familiar with the concept of a standard mortgage. We borrow money over 20 or 30 years, eventually pay it off and finally become the legal owners of our properties. By the time loans are paid off, most people have worked up to (or close to) retirement and their property is now a very valuable asset. S.H.I.P. s Lifetime Mortgage allows people to access some of this asset value. In many parts of Ireland property values have increased by three and four times over the past 10 years. The Lifetime Mortgage allows you to release some of this value. It is similar to an ordinary mortgage with one key difference there is no requirement to make a monthly repayment. In the case of our Lifetime Mortgage, we will lend money to you and this will attract a fixed rate of interest over the life of your loan. The lump sum provided by way of your loan is tax free. These loans are provided by Seniors Finance Ireland Limited formed in 2005 as a wholly owned subsidiary of Shared Home Investment Plan Limited. Products provided by Seniors Finance Ireland Limited are subject to the requirements of the Consumer Credit Act 1995 as supervised by the Financial Regulator. The Lifetime Mortgage is subject to eligibility criteria. Terms and Conditions apply. The information contained in this brochure is intended to be of a general nature. We recommend that you contact your broker who will explain the details to you.
Is equity release for me? If you are interested in raising a lump sum of money, you should consider all the options open to you. For example, do you have savings that you can cash in? Can you raise finance from other family members? Would you be willing to sell your home and move to a smaller house or apartment thereby freeing up cash? The Lifetime Mortgage allows you to raise a tax free lump sum and to continue to live in your existing home for the rest of your life. When first buying homes, most people would have borrowed cash to get on the property ladder. In other words we used money to get property. The Lifetime Mortgage works the reverse in that now we can use some of the significant value built up in our property to generate cash. In other words, we can use property to get money. Important Features of the Lifetime Mortgage The minimum amount that you can take as a tax-free lump sum is 25,000 (please note that this is subject to change without notice). All applicants must be aged 60 or above. You must have your property independently valued by a qualified valuer and you must also have independent legal advice. You must own your own home. If there is a small loan currently outstanding on your property, this will have to be paid off out of the proceeds of your Lifetime Mortgage. You have the right to occupy your property for the rest of your life/lives. There are no monthly repayments to be made on your Lifetime Mortgage. You must keep you home insured at your own expense. We do not insist that you have a will in place. The Lifetime Mortgage gives the legal right for your estate or family to own the family home after your death. In other words it is not necessary for the property to be sold on the open market in order to repay the Lifetime Mortgage. The Lifetime Mortgage contains a guarantee preventing a negative equity situation arising. This means that when the time comes to repay the loan and accrued interest, the repayment owed will never exceed the net sale proceeds of your property. 1
Property Criteria Properties must comply with the following: The property must be your principal private residence and be located within the republic of Ireland The property must be freehold or, if leasehold, the lease must have an unexpired term of at least 99 years The property must comply with all planning and building regulations The property must be freely marketable in the professional opinion of an independent valuer The property must have good marketable title which will be confirmed by your solicitor. The following property types are excluded: Properties constructed in whole or in part in a manner unacceptable to S.H.I.P. or its subsidiary companies Properties which are tenanted Commercial properties or properties forming an integral part of commercial properties. The Equity Release Process 1. Read the contents of this brochure and familiarise yourself in general with the Lifetime Mortgage 2. Discuss as you wish with family members or trusted friends 3. Meet with your broker in order to discuss the Lifetime Mortgage and to consider some quotations 4. Complete the Application Form and your broker will forward it to S.H.I.P. 5. Your broker will arrange to have your property valued by an independent valuer 6. Appoint a solicitor to represent you and give you independent legal advice 7. We will send you and your solicitor copies of our legal documentation 8. Your solicitor will complete the legal process with S.H.I.P. s solicitors 9. We will forward a cheque to your solicitor who will in turn arrange payment to you 2
Customer Protection Charter S.H.I.P. s products are designed to enhance peoples lifestyles, for the rest of their lives. We at S.H.I.P. believe that financial decisions should be taken seriously. For this reason we recommend that you discuss your intentions with other family members or trusted advisors. We also insist on the following: You must have your house valued by an independent valuer approved by S.H.I.P. The fee for this is payable by you and is typically 127 plus VAT. In order to complete the process and receive your tax-free lump sum you must have independent legal advice. Your solicitor s fee is payable by you and the amount payable will depend upon the arrangements made between you and your solicitor. Important Notice This brochure pack and the information contained herein have been prepared to give an overall explanation of equity release products available through S.H.I.P. and its subsidiaries. We have not taken into account the objectives or financial needs of any individual or couple. Customers of S.H.I.P. must be aged 60 or above. In the case of couples, both partners must be aged 60 or above. Non-Contributory State Pensions : If you are the recipient of a non-contributory state pension (i.e. means tested), the lump sum you receive under our plans may affect the weekly amount to which you are entitled. For further information you should contact your social welfare office. This is an information brochure and is of no legal effect. S.H.I.P. operates an internal complaints procedure whereby complaints are considered by a senior member of its management team. All complaints should be addressed to: The Manager, Customer Services, S.H.I.P., 23 Ely Place, Dublin 2. As a mortgage lender S.H.I.P. is subject to oversight by the Financial Services Ombudsman. If you are not satisfied with the outcome of S.H.I.P. s internal complaints procedure you may raise your complaint with The Financial Services Ombudsman s Bureau, 32 Upper Merrion St., Dublin 2, or online at www.financialombudsman.ie 3
Consumer Credit Act Notices Valuation S.H.I.P. requires that a valuation be carried out on the property(ies) offered as security. This valuation must be completed by a valuer acceptable to S.H.I.P. and any such valuation or report remains the property of S.H.I.P.. No responsibility whatsoever is implied or accepted or warranty given by S.H.I.P. for the value or condition of the property by reason of such valuation. You are responsible for the payment of the valuation fee. You are entitled to your own copy of the valuation report. Fees and Costs S.H.I.P. requires that a valuation be carried out by a valuer acceptable to S.H.I.P. and that the appropriate fee be paid by you directly to the valuer. In the event that your application for a Lifetime Mortgage is refused the valuation fee will be refunded to you. Legal fees (excluding costs associated with S.H.I.P. s legal investigation of title for the purpose of the Loan) are payable by the borrower to his or her solicitor. Please ask your Solicitor for an estimate of his/her fee for investigating Title and completion of a Certificate of Title. In addition there will be outlay comprising Stamp Duty, Registration Fees and Search Fees etc. Redemption The rate of interest applicable to this loan will be fixed for the life of the Applicant(s) from the date of drawdown. In the event of early repayment of the loan in whole or in part for any reason S.H.I.P. may charge a redemption fee to cover any costs incurred by S.H.I.P. in amending or terminating any interest rate hedging contract entered into by or on behalf of S.H.I.P. in order to provide the Applicant with the certainty of a fixed rate of interest for the life of the Applicant. The redemption fee is calculated using the following formula: Redemption fee = PV(f) PV(f1) Where: PV(f) = Present Value of remaining flows under the original interest rate hedge; and PV(f1) = Present Value of remaining flows based off current market rates. WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A LOAN OR ANY OTHER LOAN SECURED ON IT. THE PAYMENT RATES ON THIS HOUSING LOAN ARE FIXED AND MAY NOT BE ADJUSTED BY S.H.I.P. 4
Registered office: 23 Ely Place, Dublin 2. LoCall: 1890 60 70 80 Tel: 01 6649 333 Fax: 01 6649 334 Website: www.shipireland.ie E-Mail: info@shipireland.ie