to achieve your life plans Please note we are not authorised to provide advice or arrange equity release products so we have partnered with a leading equity release specialist to provide this service to you ID: 629645
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Slide1
Releasing Equity From Your Hometo achieve your life plans
Please note we are not authorised to provide advice or arrange equity release products, so we have partnered with a leading equity release specialist to provide this service to you. Slide2
What is Equity?
‘
Equity Release
is a product designed for asset-rich home owners who do not want to move house but could use some extra money.’
‘Equity in your home is the difference between the home’s fair market value and the outstanding balances of all mortgages, secured loans and charges on the property.’Slide3
What is equity release?Slide4
What is equity release used for?
‘It’s nice to see their inheritance in action. Because of equity release, my granddaughters don’t want for anything when it comes to education’
Make home improvements.
Clear your existing mortgage.
Enhance your lifestyle.
Gift an early inheritance.
Inheritance Tax Planning – Not regulated by the Financial Conduct Authority.
Realise your ambitious travel plans.
Help family plan for a wedding or a new family member.
Help loved ones onto the property ladder
.
Boost your business with some capital.Slide5
Roll-up Lifetime Mortgage
Tax free, cash lump sum.
No monthly repayments.
Interest and loan paid from your estate when you pass away.
Draw-down
Lifetime
Mortgage
Tax free cash to draw when needed
No monthly repayments.
No Interest on amount held in the reserve account.
Interest-Only
Lifetime
Mortgage
Tax free, cash lump sum.
Can make monthly interest payments.
Can change to a roll-up plan.
Types of Plans:Slide6
Example: Roll-up Lifetime Mortgage:
Sally was 55, her husband John was 62 and their house was worth
£200,000
.
They borrowed £25,000 to buy a car.The interest rate was fixed for life and the
interest added to the loan each year.
Sally outlived her husband but passed away
20 years after taking out the equity release plan.
Their house increased in value at a yearly rate of
2.95%
and is now worth
£360,536.
They made no monthly repayments during the life of the plan and so the interest rolled up.
Their estate sold the property and repaid the equity release provider
£25,000
plus interest and the rest of the money went to their family as per the demands of the will.Slide7
Example: Draw-down Lifetime Mortgage
Michael was 71, his wife Mary was 69 and their house was worth
£400,000.
They released
£40,000 in a lump sum to gift to family for an early inheritance and to take a holiday.
They were also able to reserve
£20,000
in a drawdown facility to call upon in the future if needed.
They received an interest rate that was fixed for life.
After 5 years, they drew
£5,000
from their drawdown reserve and
a few years later drew the other
£15,000
to take the
whole family on holiday.
Their house increased in value at a yearly rate of
2.95%
and after 15 years was worth
£622,299
when both Mary and Michael passed away.
Continued...Slide8
Draw-down Lifetime Mortgage (Continued)
They made no monthly repayments during their lifetime and the interest was only ever charged on the money after it was actually drawn.
Their estate sold the property and repaid the equity release provider the money borrowed plus interest.
The money remaining went to the estate as per the demands of Mary and Michael’s will.Slide9
Example: Interest-Only Lifetime Mortgage
:
James is a 62 year old widower whose house was
valued at
£300,000.James released £30,000 from his property and
chose the Interest-Only Lifetime Mortgage where
he was able to repay the interest each month.
After 5 years James started working part time and
was able to stop making monthly payments and
convert his plan to a Roll-up Lifetime Mortgage.
As James gave up work and his children moved further away, he decided to move to a smaller property and was able to move the plan on to his new property.Slide10
Features & Risks
Features:
It is tax free.
It is yours to spend as you like.
No monthly repayments unless you choose so.
Highly regulated.
Stay in your home and retain ownership.
The plan can move with you.
Risks:
It can affect your entitlement to means-tested state benefits.
As it involves taking money from your property now, all equity release plans may
imapct
the value of your estate later...
...but we will advise you on this.Slide11
Common Questions:
What about my children’s inheritance?
Can I stay in my home?
What if I want to move?
Can I end up owing more than the value of my home?
Can I repay the plan early?
Can I have a mortgage and equity release at the same time?Slide12
You will have the safety net of advice that is always reviewed and given a second opinion.
We will work entirely at your pace and you will never be under any obligation to proceed.
Your enquiry will be dealt with promptly, courteously and confidentially.
Your questions will be answered thoroughly and expertly. We take our training seriously.
Plans will be laid out clearly with respect shown to all alternatives you may have.Your personal financial circumstances will be taken into account and plans will be recommended accordingly.We only charge fees for our advice if you go through with our recommendations.We provide free consultations to discuss your needs, priorities and preferences.Slide13
The Next Steps:
1.
2.
4.
If you wish to proceed further we can expertly take you through each step
Talk to our UK based call centre.
We’ll make you an appointment with one of our financial advisers.
Face to face meeting with your financial adviser.
3.
We’ll answer your questions and check your eligibility Slide14
Thank you,
I would now like to answer your questions.
This is a Lifetime Mortgage which may impact the value of your estate and could affect your entitlement to means tested State Benefits. To understand the features and risks, ask for a Personalised Illustration.
Only if you choose to proceed and your case completes will an advice fee be charged, currently £1,295.