Lifetime Mortgage Magazine - Oct 2019 by Premier Equity Release Club

Issue no.12 October 2019

L I F E T I M E M O RTG AG E

INSIGHT Retirement Included in this issue

Rates tumble into the 3%

Product options rise as market flexes with demand

The changing role of residential property By Jacqueline Berry, Director, My Care Consultant

By Jane Hanlon, Club Manager, The Premier Equity Release Club

ÂŁ Page 4

Page 8

Page 11

Please note any information in this magazine is for registered intermediaries and NOT to be issued to members of the public.

Welcome To our October 2019 edition

Rates, so low it has never been a better time to take a fixed lifetime mortgage, remember they are portable in many cases allowing flexibility to move for clients. More advisers now see their own client bank ageing and now offer help and guidance in this market, hence the reason for the magazine informing, educating in this exciting growing market. This is a free publication and is brought to you with the help and support of Pure Retirement. Thank you Pure Retirement Marketing Team. Please enjoy the read and feel free to share.

Jane Hanlon, Club Manager, The Premier Equity Release Club

LIFETIME MORTGAGE INSIGHT

Contents 4 Rates tumble down into the 3% 6 Helping the market to grow by offering support 8 Equity release product trends revealed as industry responds to consumer demand 10 Is downsizing the only option? 11 The changing role of residential property 13 A historic period for retirement planning 16 Equity release purchases becoming far more common 17 Hodge 19 Learning zone 20 Rates 21 Contact details and extra services

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

Rates tumble down into the 3%

By Jane Hanlon, Club Manager, The Premier Equity Release Club

OR £80,000 £60,000 £50,000 £40,000 £20,000 £0,00

-£20,000 -£40,000

2019 has seen interest rates tumble and new funders enter the market. Lenders have set themselves high targets but consumer demand is currently down. As an adviser, are you making consumers aware of the low interest rates available and that lenders do not discriminate based on income?

Old ER plan New ER plan Interest interest rate interest rate saving 3.5% 6% Year £100,000.00

£125,000.00

£25,000.00

£106,000.00

£129,375.00

-£23,375.00

£112,360.00

£133,903.13

-£21,543.13

£119,101.60

£138,589.73

-£19,488.13

£126,247.70

£143,440.38

-£17,192.68

£133,822.56

£148,460.79

-£14,638.23

£141,851.91

£153,656.92

-£11,805.00

£150,363.03

£159,034.91

-£8,671.88

£159,384.81

£164,601.13

-£5,216.32

£168,947.90

£170,362.17

-£1,414.27

£179,084.77

£176,324.85

£2,759.92

£189,829.86

£182,496.21

£7,33.64

£201,219.65

£188,883.58

£12,336.07

£213,292.83

£195,494.51

£17,798.32

£226,090.40

202,336.82

£23,753.58

£239,655.82

£209,418.60

£30,237.22

£254,035.17

£216,748.25

£37,286.91

£269,277.28

£224,334.44

£44,942.83

Let’s look at the figures.

£285,433.92

£232,186.15

£53,247.77

Here is an example of paying the maximum penalty, which shows year 9/10 is the

£302,559.95

£240,312.66

£62,247.29

£320,713.55

£248,723.61

£71,989.94

Looking back a few years ago, a loan of £100,000 would double in 12 years based on the average interest rate of around 6%. In comparison, the same loan taken out at a lower interest rate of 3.5% will take 18 years to double, saving the estate a massive £121,734.66. (Based on £320,713.55 £198,978.89). So is this a reason to re-broker deals? Redemption can vary from 5%, if on a fixed rate, to up to 25% if on gilts. Wanting more cash or additional features may give good cause to justify any penalties, provided the overall savings can be proven and the customer lives long enough to make the most of the benefits. Don’t forget that some lenders have a 3-year window to redeem without penalty when one party passes away or enters long term care.

break-even point and over the course of 20 years, £71,989.94 is saved for the estate.

New schemes offer new options such accepting payments, drawdown, portability and increased choice for customers. Another reason to consider re-brokering an existing deal is to enable customers to benefit from the interest on their lifetime mortgage being rolled up based on one of the new, lower rates. Any rate below 4% is below most mortgage lenders’ standard variable rates and is fixed for life. There is no affordability test, which means lenders do not discriminate on income, earnings, pension or even means-tested benefits. How long will these rates last? Your guess is as good as mine, but why not make hay while the sun shines. From the lender’s point of view, they have large targets to hit but at what price? Taking into account the cost of acquisition, processing and commission fees (paid on average 2.25% to Club members), you might ask how and when do they make profit? But as advisers, this is not our problem, just let your clients take advantage of low rates while it lasts.

For more information and guidance call Premier Equity Release Club – 01326 567970 Totally independent and impartial, helping advisers win business on a daily basis. Let us help you!

Retirement

Experts in Equity Release The power to change your clientsâ&#x20AC;&#x2122; future

More for your customers with our Fee

Applications to suit your needs: online,

Underwriters available as always for

Bespoke Marketing Support Team to

Dedicated Relationship Managers,

Brand new Mobile App and Improved

Contributions and Cashback options

you to speak to directly on the phone Broker Support Team and Face to face BDMs to visit you in the field

print, or even a hybrid of the two help you build your business

Case Tracking facilities in our refreshed online Portal

0113 3660 599 www.pureretirement.co.uk For intermediary use only. Pure Retirement Limited, 3175 Century Way, Thorpe Park, Leeds, LS15 8ZB Company registered in England and Wales No. 7240896. Pure Retirement Limited is authorised and regulated by the Financial Conduct Authority. FCA registered number 582621.

SOVEREIGN RANGE

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

Helping the market to grow by offering support Retirement

By Paul Carter, CEO, Pure Retirement

If ever there was an indicator of the strength of the later life lending market at present, it’s been the fact that it’s been able to post 2% year-on-year Q2 customer growth. While the figures represent modest gains compared to the double-digit year-on-year increases seen during Q1 – the busiest start to a year on record according to the Equity Release Council – they nonetheless represent ongoing growth in the face of ongoing political uncertainty which has impacted the wider financial services sector as a whole. But even in this period of growth it’s important we don’t underestimate the important role that advisers can have in the wider process, as having a market that offers a wealth of product solutions is of little value if there isn’t a knowledgeable bank of financial advisers on hand to act as a bridge between lenders and consumers. As if to underline that point, in one widely-reported case some diligent work by a financial adviser resulted in a £133,000 owed pension windfall for his potential customer. In order to continue giving accurate information to their customer base, advisers undoubtedly need the resources, support and materials to both gain a full understanding of the current state of the market and allow them to best reach their customers.

A natural starting point is The Adviser Guide To Equity Release, a one-stop information tool for those entering the market jointly developed between ourselves and the Equity Release Council. But where next afterwards? Many lenders and publications hold roadshow events and webinars, both of which offer an effective way to gain insight into current market trends as well as (in the case of the former) key networking opportunities. At Pure, we’ve taken the extra step of developing our own Marketing Toolkit to provide cost-effective materials for advisers wanting to reach prospective clients, providing a library of offline and traditional marketing collateral (i.e. brochures, banners, flyers etc.), as well as last year’s Digital element which combines guiding documents with practical assistance solutions in an increasingly digital world, as part of our wider

commitment to helping to grow the market through supporting those within it. We’ve developed some further recent additions including white label presentations for use with both customers and introducers, and quarterly news summaries (augmented by supporting video content) to provide advisers with an overview of the key market and demographic trends which might influence how they operate going forward. We’re not stopping there either, with trial additions of some face-to-face marketing workshops taking place in the next two months, and a newly-launched partnership with My Care Consultant to offer advisers information regarding funding long-term care through its CareBox platform. The wider market has a duty to not only look after those already within it but also to provide the levels of support which will entice those yet to commit to interacting with the sector. At Pure Retirement we’re determined to do just that, and look forward to assisting the later life lending sector in continuing its current upward trajectory.

A safe market for consumers, is a strong market for your business Apply today for membership and save £70 admin fee on your application use code LMI 19 Joining our growing membership means: • Inclusion in our online consumer facing Member Directory, increasingly accessed by over 2,000* visitors on average a month. • Use of Council logo on business materials – a kitemark that sets you apart and gives additional reassurance to your clients. • Access to the member-only section of our website – factsheets, technical bulletins, briefings, newsletter and other useful resources. • Adviser pack – downloadable templates and information for your business including the adviser checklist. • Access to professional workshops and presentations with the most cost-effective educational partner scheme, in association with the Later Life Academy. • Direct engagement with government, regulators & think tanks, through parliamentary briefings & stakeholder events. • Networking opportunities at Council meetings and in our rich event portfolio aimed at supporting your business development activities. For further information, see our membership prospectus. *Correct at time of printing.

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

Product options rise as market flexes with demand

The Equity Release Council has published its Autumn Market Report, here is an overview of the findings Equity release customers saw unprecedented levels of product choice and flexibility in the first six months of 2019, according to the Equity Release Council’s Autumn 2019 Market Report. This comes as a total of £1.85bn in housing wealth was unlocked in H1 2019 by homeowners aged 55+ to support their later life financial planning. In a sign that the industry continues to respond to consumer demand for more flexibility and choice, the range of product options increased two-fold compared to this time last year to almost 300 options. Energised by strong competition in the market and consumer demand, there has been continued growth across all product features – underpinned by Equity Release Council standards guaranteeing three levels of protection including product safeguards, regulated financial advice and independent legal advice. The top growth areas over the last year include options for sheltered or age-restricted accommodation, interest-serviced (regular interest payments) options, downsizing protection, inheritance guarantees and drawdown facilities.

Highlights from the report

• Equity release customers see unprecedented levels of product choice and flexibility in the first six months of 2019 • Top growth areas over the past year include options for sheltered or age-restricted accommodation, making regular interest payments, downsizing protection, inheritance guarantees and drawdown facilities • Average equity release rates fell below 5% for the first time to 4.91% in July 2019 • The market has continued to develop and mature in recent years, energised by strong competition in the market and underpinned by robust consumer safeguards David Burrowes, Chairman of the Equity Release Council comments: “The equity release market is responding to consumer demand as it continues to evolve and grow. Increased product innovation and flexibilities are helping to meet a wide range of financial and social needs, from providing extra retirement income to passing on wealth to younger generations. “Older homeowners considering equity release have never before had more choice and flexibility to meet their changing needs and their families’, with average rates also at record lows. A broader

range of products means equity release can play an important part of advisers’ toolkit when considering clients’ requirements in later life. It’s vital that advisers across a host of areas – including pensions and wealth management – can identify when equity release may or may not be suitable based on today’s product range and can refer a client for specialist advice where appropriate. “The market’s development has been driven by competition, reinforced by robust consumer protections and product safeguards. As the UK’s ageing population continues to grow, making use of housing wealth will be essential to help all generations meet the financial challenges they’re facing both today and tomorrow.”

• To read the report in full visit www.equityreleasecouncil.com

Equity Release Specialists

“If you want the real deal contact Gilroy Steel” Do not worry about modern technology as we will assist you throughout the process by providing: • First Class Service providing Value for Money with competitive rates • Legal Process we handle this for you and take the stress away • Appointments booked 7 days a week nationally Our Scheduling Team work closely with you to book a time and day convenient to you • Appointments can also be arranged in the comfort of your own home • Dedicated Case Handlers We have a pro-active approach and each client will be given their case handler direct dial number so no wasting time pressing different options! • Constant Updates to our clients throughout the process via your own Dedicated Case Handler, 24*7 secure client portal and text messages • Team Leaders to make sure our clients receive the best and most professional service • A streamlined service as we will contact clients at each stage throughout the process by phone/email/portal/sms • Funds Paid Direct to you on the day of completion

Gilroy Steel Solicitors Equity Release Team is considered to be one of the leading firms nationally. We have national coverage wherever you are in England and Wales with our dedicated teams of Solicitors visiting you in the comfort of your own home or alternatively you can visit one of our 4 offices where we have ample free parking. Our team is lead by Kelly-Jayne Steel (Managing Director/Solicitor) who has over 20 years experience in equity release, successfully completing many thousands of equity release matters. Kelly has built the team to provide you with a first class service which has a proven marketing leading track record. We understand that you may want to enjoy a more comfortable retirement by releasing equity from your home, and Gilroy Steel will make this process easy for you. Your equity release will be handled by one of our highly trained specialist equity release team who are easy to talk to and will guide you through the process together with a quick turnaround. You will also have piece of mind in knowing that we have dedicated advanced legal teams who work in the background to handle those cases which may not be so straight forward. If you have any questions on how Gilroy Steel Solicitors can assist you with your equity release we will be happy to hear from you. Please call us on 01604 620890 (Option 5) to speak to one of our friendly team.

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

Is downsizing the only option? Jo Wilson, Key Account Manager

As homeowners reach retirement, many decide to move to a smaller home. While downsizing has advantages, it’s important to understand your client’s motivation for moving. Whether it’s financial or to feel more socially connected, there may be an alternative solution that better suits their needs.

Freeing up cash Research has shown by moving from an average detached to an average semi-detached home, downsizers could free up around £113,000. These proceeds could help fund retirement, support family or pay off a mortgage. It could also help reduce future outgoings. Smaller homes are often easier to maintain, cheaper to run, and could be closer to amenities. But is the home your client wants easy to find?

The competition is tough Downsizing retirees face fierce competition from first-time buyers. Stamp duty relief and government help-to-buy schemes have led to a large influx in new property owners, especially in urban areas offering better employment opportunities. These smaller homes have become sought after. And this could mean your clients considering downsizing won’t get as much for their money. The UK’s housing stock is also imbalanced. There are almost 25% more four-bedroom homes on the market than there are two-bedroom homes, yet demand swings towards the latter. It’s often suggested that retirees occupying larger homes should free up this housing stock for families. Yet 49%

of those wanting to downsize found a lack of suitable properties available. Inflated prices and lack of availability are proving problematic for potential downsizers.

The high costs of moving Often a decision to downsize is financially driven. But has your client considered all of the costs involved? If you’ve moved home recently you’ll appreciate how stamp duty, solicitors and estate agent fees alone can see costs run into thousands of pounds. This could significantly eat into the proceeds made from downsizing. Here are just some of the costs your client could expect to incur: Average cost of moving (based on home worth £250k)

A lifetime mortgage could help If your client is looking for an alternative to downsizing, they could consider a lifetime mortgage. By releasing equity from their home, your client could have the opportunity to stay in their existing neighbourhood, and avoid the potential stress of downsizing. They could even use the money to adapt their home. It’s estimated only 7% of homes have accessibility features that may be required in later life. A lifetime mortgage could provide funds to plan for future accessibility needs. Whether that’s a stair lift, ramp, or wet room installation, your advice could help keep them in a home they love for longer.

Stamp duty

£2,500

Legal fees

£850 - £1,500

Valuation fees

£150 - £1,500

Surveyors fees

£250 - £600

Local searches

£250 - £300

Removal costs

£300 - £600

A lifetime mortgage will reduce an inheritance and could affect eligibility for state benefits.

Electronic Transfer fee

£40 - £50

Downsizing isn’t the only option

It’s not all about the money While downsizing may free up funds, there are also emotional attachments to consider. Stepping away from a familiar community could leave your clients feeling isolated and out of touch with their network. It could mean leaving a home they love, and sacrificing space for family to stay over. It’s not just the space for family. Would downsizing leave enough room for all of your client’s possessions? Sentimental belongings collected in their lifetime may not fit inside a smaller home. And 23% of last-time buyers said they’d miss having more space and storage if they downsized.

Although a lifetime mortgage could help, it’s important to remember it creates a debt on the home. If your client has more affordable ways of borrowing available, these should be considered first.

Some of your clients may think downsizing is the only way to boost their retirement funds. High costs of moving can often be overlooked, and the prospect of leaving the family home can be uncomfortable for many. But good advice makes all the difference. And if your client is looking for an alternative to downsizing – a lifetime mortgage could help. Find out more about Legal & General’s lifetime mortgages, and how they could be a viable alternative to downsizing.

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

The changing role of residential property By Jacqueline Berry, Director, My Care Consultant

Whilst the view of a home as a memory-embedded asset to be passed down through the generations continues to persist with some homeowners, many are increasingly thinking of property as a multi-purpose financial asset; a store of wealth to help subsidise both predictable and unpredictable costs in Later Life, including the payment of care fees. The recently launched report from the Equity Release Council, ‘Beyond bricks and mortar: the changing role of property in later life financial plans’ highlights some of the reasons for this change in thinking regarding residential property. For example, they report that the over-55s now hold 65% of property wealth, and the over-55s make up half (51%) of UK owner-occupiers, compared with 36% in 2003/4. Nearly two thirds of over-65 households have £125,000 or more in property wealth, and as many as one in three have £250,000 or more. When we then look at social care, not only has demand increased due to an ageing population, but the nature of that demand is also changing in terms of domiciliary vs residential care. The rhetoric of both Government and local authorities seems to increasingly favour domiciliary care. And while demand is clearly increasing, supply is under threat from spending cuts and less generous eligibility thresholds. Many local authorities are no longer funding care for people with low and moderate care needs. A significant number of homecare providers have confirmed they receive less council funding, some handing back their contracts, and most reporting that growth in the market is now focused

£ on privately and NHS funded homecare. The indications are that this is likely to remain the case at least for the foreseeable future. (Source: Home Care in England: views from commissioners and providers, The Kings Fund, December 2018). This whole context has significantly increased the relevance of housing equity for self-funders of care. At the same time, equity release schemes, in particular the lifetime mortgage variant, have cemented a mainstream position as part of modern retirement planning. The Equity Release Council reports a steady growth of activity over recent years that has seen over £1bn of property wealth released in both Q3 and Q4 2018, with lifetime mortgages now making up approximately a third of all new mortgages among customers in their mid-fifties and beyond. This growing consumer demand has continued to encourage – and be encouraged by – product innovation, creating a wide range of options to suit varying needs.

From an advice perspective, the siloed nature of many financial advisers and firms in terms of their market focus still needs addressing. To do a comprehensive job in respect of assessing all ways to pay for care, an adviser needs qualifications and experience in equity release, mortgages, LTC, investments and overall financial planning. Whilst some still restrict their expertise to one or a few of these areas, those able to advise in all areas of paying for care as well as being able to offer access to non-regulated care advice, and who demonstrate appropriate soft skills, will in my view be better placed in coming years to reap the rewards of meeting the later life needs of our ever-ageing population. My Care Consultant is the trading name of My Care Consultant Services Ltd. Registered in England No. 9963014. Registered office: International House, 12 Constance Street, London, E16 2DQ .

Introducing our new Business Development Manager to OneFamily Lifetime Mortgages

We are delighted to welcome Donna Spence, our new Business Development Manager for Lifetime Mortgages. Donna is here to support advisers like you to understand the benefits of OneFamily Lifetime Mortgages, and how you can enhance your offering to customers. Donna joins OneFamily with over 12 yearsâ&#x20AC;&#x2122; experience in the mortgage and protection industry, including four years most recently with Fluent Money, where she was a Business Development Manager within the specialist second charge lending market. She has also held adviser roles at Alliance & Leicester and Santander. Donna is already out on the road meeting lots of advisers at events, so please pop-by and say hello when you next see us! If you have a case youâ&#x20AC;&#x2122;d like to discuss with Donna, give her a call on 07824 479528 or email donna.spence@onefamily.com. Alternatively, you can speak directly with a member of our sales support team on 0800 802 1645*, or visit our website - www.onefamilyadviser.com.

*Lines open 9am - 5.30pm, Monday to Friday. We might record your call to help improve our training and for security purposes. Calls to 0800 or 0808 numbers are free from UK landlines and personal mobiles. With business mobiles the cost will depend on your phone provider. If you'd like to know more, please ask your provider

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

A historic period for retirement planning By Jennafer Holt, Marketing Manager at more 2 life

The later life lending sector has never been as diverse as it is today. New products are frequently entering the market, and current products are being developed to better suit the needs of those reaching or at retirement age. In order to offer a more holistic financial advice service, more advisers than ever are engaging with the later life lending sector and are providing retirement planning services.

Debt held by retirees to dramatically increase Indeed, research commissioned this year by more 2 life with Cebr (Centre for Economics and Business Research) painted a clear picture of rising debt levels and lower income streams among retirees, proving that more financial advisers need to ensure they are operating in this sector. Forecasts suggest that by 2029, the total value of debt for people aged 55+ will reach a staggering £548 billion. While a growing number of older people are carrying secured and unsecured debt into their retirement as part of a deliberate asset management strategy, more are doing so to simply make ends meet. The report shows that income levels are continuing to fall with age, with many 65-74 year olds estimated to have just £3,100 left at end of the year to save, invest, or use for future spending. This

is the second lowest amount of income left after expenditure of all age groups, after the under 30s age group and adds credence to the belief held by almost half of over-55s (48%) that they do not have enough savings to cover an unexpected £5,000 bill. The retirement landscape is changing; people are spending longer in retirement than ever, and with this in mind, it is clear that more needs to be done to educate consumers that changing products to suit their needs are available.

and after surveying a sample of over 170 advisers who stated they would like to see more plans offer the feature. Partial repayments ensure clients have the freedom to repay as and when they need to, and control in the ability to reduce their loan size and therefore the effect of roll-up interest. Fixed ERCs also provide transparency and peace of mind in giving clients the ability to properly assess the risk and financial outcomes of potentially incurring an ERC.

Other protections we offer across our product range include inheritance Record-breaking rates and protection, downsizing protection and ERC choice exemptions for the remaining applicant in In August of this year, lifetime mortgage joint cases where one applicant passes interest rates dropped below 3% (MER) for away or goes into long-term care. We also the first time in history, and there are now offer cashback deals and valuation and well over 200 different lifetime mortgages on arrangement fee-free deals with selected the market. In fact, with rates below 3% products, so clients can make the most out MER, it would take 20 years for a client’s of the money released from their homes. debt to double in size, as compared with With more choice and competitive rates the typical average of 10 years. offered across the more 2 life product range Loan-to-values are now available from the than ever before, there’s never been a better very low (5%) up to the very high (56%) to time to offer a more 2 life plan to your eligible suit clients with a range of required loan clients. amounts and house values, for whatever purpose they need. In fact, this range of rate Visit our website to find out more about the and LTV availability doesn’t just sit across choice we can offer your clients, or register the market, but with more 2 life alone. The on fastpath to create a KFI today. breadth of choice offered with more 2 life plans also doesn’t just stop at rate and LTVs, but includes the additional features and protections offered on each plan. Voluntary partial repayments are now available on every single plan more 2 life offer. This comes after the market-wide research undertaken by Cebr made explicitly clear the unpredictability of modern retirement,

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

The Ashfordâ&#x20AC;&#x2122;s Promise

As technology progresses and we all become more streamlined and efficient, and you are offered more and more ways to be contacted and updated, sometimes it is worthwhile to go back to basics What do you really want/need to know about a case? I hear daily myths of how our rivals portal systems are so good - I say myths as I have seen them myself, in reality they offer nothing more than we do. 'So with my "TCF" and "TIFAs WR" (Treating IFAs with Respect) hat on, here is the Ashford's Promise to you all:

7. You will be free to call/email the case handler whenever you like for updates/clarification. 8. Our final promise - we will look after your clients, and keep them informed and updated throughout.

For further details of Ashford's specialist team please see below: They handle the processing of your clients equity release appointments documents and mortgage offer. They will update you on the progress of your clients application on a step to step basis.

Alison Shiell

9. Finally we will ensure your fee is directly paid to you by BACs on day of completion.

Head of Operations a.shiell@ashfords.co.uk

Why use the rest when you can use the best!

Direct: 01392 334068

If you have any queries on any of the above please do let us know.

Chris Bates Team Supervisor Technical Cases

1. You will be notified when the case has been opened and initial letters sent. Your case will then be on the portal. You will be notified of the case handler. 2. We will email you/update the portal when the clients return the Questionnaire. 3. We will notify you when we receive the offer and confirm that an appointment has been made and when to sign the documents. 4. We will email you to confirm when signed documents have been returned to us and sent to lenders solicitors and also if there is anything outstanding or indeed if there are any issues. 5. You will be advised of the completion date and your fee sent to you by BACs (if we have your signed client fee agreement and bank details) on the day of completion. 6. All of the above will be emailed to you and updated on the portal.

c.bates@ashfords.co.uk Direct: 01392 334045

Jacey Wilmott Supervisor Client Appointments j.wilmott@ashfords.co.uk

Offices

Direct: 01392 3334067

Travelling solicitors

Holly Fisher IFA Team Equity Release Supervisor h.fisher@ashfords.co.uk Direct: 01392 334049

Team: Ellie Thomas

e.thomas@ashfords.co.uk Direct 01392 334047

Matt Leaney m.leanev@ashfords.co.uk Direct 01392 334039

Iona Donnely

i.donnelly@ashfords.co.uk Direct 01392 334046

LIFETIME MORTGAGE INSIGHTIssue Issue no.10 April 2019 LIFETIME MORTGAGE INSIGHT no.12 October 2019

Just For You Lifetime Mortgage - case study Couple wanting to fund a conservatory now and a campervan later. By Nick Brown, Propositions Manager, Retirement Lending, Just Retirement

Allan and Lisa Lim’s story Allan (68) and Lisa (61) have been married for 40 years with a son and two daughters. They have three grandchildren with another on the way. This couple has always been close to their children and love being grandparents, spoiling them whenever they can. They moved to a smaller house 15 years ago, once the children had grown up, but now find that they need more space to host family dinners and for when the grandchildren are around. Allan’s recently retired and both are looking forward to retirement with no plans to slow down. They intend to spend more time outside as both are keen gardeners. They also hope to spend some time exploring the UK and are thinking of buying a campervan in a few years’ time for these adventures. Lifetime mortgage required: They need £58,000 for a conservatory and home improvements with the possibility of purchasing a campervan in the future. They can borrow this amount secured against their £380,000 home in Suffolk.

How does the Just For You Lifetime Mortgage benefit them? Allan and Lisa were able to build a conservatory to enjoy relaxing in, look out over their garden and host family dinners. This will also provide more space for their grandchildren when they come to visit. A cash facility gives them the option to withdraw extra funds in the future and to buy a campervan.

The Just For You Lifetime Mortgage enabled them to: • Use some of the equity in their house to help them achieve their desired retirement lifestyle. • Enjoy the flexibility of only withdrawing extra funds when they’re needed. • Manage the debt more easily as interest is only charged as and when funds are withdrawn. All numbers are illustrative only to show how the Just For You Lifetime Mortgage could be used. This is not intended to provide any form of advice or recommendation.

For more information Call: 01737 233297 Email: support@wearejust.co.uk Or visit: justadviser.com Lines are open Monday to Friday, 8.30am to 5.30pm

LIFETIME MORTGAGE INSIGHT Issue no.12 October 2019

Equity release purchases becoming far more common With a growing number of over 55’s using equity release as a tool to enable them to move home or purchase a second home. Adlington Law have evolved to provide a ’one stop shop’ for all conveyancing aspects. Our dedicated in-house conveyancing team deal with a varied caseload, including sales and purchase, freehold purchases and reversion. In addition, the conveyancing team offer advice and guidance on any technical aspects of equity release cases. Equity release purchase is a far more time-consuming process than straightforward equity releases, which can typically complete in three to four weeks from our receipt of the offer. The legal work involved includes review of residential searches, title deeds and documents, together with raising relevant comprehensive enquiries, ensuring peace of mind for both our client and the lender.

Unnecessary delays can, and often will, be incurred where solicitors are instructed to deal with the sale and purchase separately. Here at Adlington Law we provide our clients with the facility to deal with everything under one roof, providing the client with the luxury of using one law firm specialising in both equity release and the related sale and purchase, thus ensuring the entire process runs as smoothly and efficiently as possible. This fully rounded, professional service ensures minimum delay, maximum efficiency. The fact that fewer people are involved also helps in making the client feel more relaxed as our experience tells us the over 55s can be vulnerable. This service is all provided by a member of our experienced and friendly team, who are always on hand to answer any question, no matter how big or small. Every client receives a home visit by one of our own dedicated consultants. The consultant will visit the client to go through the equity release advice with them and explain everything to our client in a way that

they understand, tailoring the way the advice is presented to cater for that client’s individual needs. This home visit is a fully inclusive part of the service we provide to every client and attracts no additional fee. Furthermore, on every new instruction received, we will contact the client with a full breakdown of the expected costs to deal with their transaction, providing a fully transparent costs breakdown. The Equity Release Team at Adlington Law is headed up by Chris Lyon, a solicitor with 12 years equity release experience and 36 years general conveyancing experience. Should you have any questions on how we can help you with clients entering into an equity release purchase transaction, or any conveyancing matter which goes hand in hand with equity release, please do not hesitate to contact Chris or one of the team on the details below. Tel: 01257 686386 enquiries@adlingtonlaw.co.uk

Learning Zone Inspired by Pure Retirement’s Learning Zone on their Online Portal, we continue to include a new learning zone section in our magazines, highlighting the events and resources that are readily available to you, keeping you updated on this ever-growing market and helping you to build your business in equity release.