How to get the most from our meeting:

Equity release can help you to unlock some of the value in your home, potentially to help you fund your lifestyle once you’ve retired. But it isn’t for everyone: some people won’t be eligible and even those who do qualify need to make sure that equity release is the right choice for themselves and their family. This is why you’re obliged to get professional advice before making a decision.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

To make sure that you get the most from your meeting, it’s worth thinking carefully about what you need to do ahead of your appointment, as well as the questions you need to ask and the type of help you can expect from me. You should also be prepared to discuss alternatives to equity release – you might find there are other ways of planning for your retirement which will work for you. It’s important to know what all your potential options are..

Before the meeting

It’s often good to have a family member or friend with you at your meeting. But if you do have someone close to you who won’t be attending, it’s well worth talking over the things you might be discussing with them in advance of your meeting. Taking out equity release will reduce the amount you are able to leave as an inheritance, so it’s important that they understand what your intentions are.
Be prepared! Gather together recent bank statements, details of your monthly income and outgoings.
To help us to build a picture of your finances, bring along details of savings accounts, state benefits, investments and any outstanding mortgage or other loans. Like most financial products, equity release needs to be considered as part of the full picture of your financial affairs, so if you’re in any doubt about whether something is relevant, bring it along anyway.
Think about what you want the money for. Having a clear idea of your intentions will help make sure our discussion covers the type of equity release products which are most closely matched to your needs.
Make sure you know roughly how much your home is worth, as well as deciding on the amount you want to release. Your home will need to be valued, and the closer we get with our initial estimate, the smoother the process will be.

As your adviser I will

Be fully qualified to give equity release advice.
Help you consider if equity release is right for you and explain alternative options.
Talk through the possible impact on any state benefits you may receive.
Be ready to help you with long-term financial plans, and will offer advice on equity release that takes into account other options and your overall financial position.
Research the market and explain the different products and features available from various providers.
Take into consideration different financial situations and scenarios – not just assuming everything will be plain sailing. It’s important to think about the ‘what ifs’ too!
Make costs clear from the outset and explain any relationship with product providers.
Make sure you fully understand the basis behind any decisions. If you’re unsure of anything, always ask. There’s no such thing as a daft question!

At the meeting

I’ll talk to you about your personal circumstances and the kind of lifestyle you want during retirement, to help you decide how you can aim to reach your targets. You will probably find we cover most of your areas of concern during the course of our conversation. By the time you leave, you’ll have answers to several key questions. These include:

Are we eligible to take out an equity release product?
Is there enough equity in our home to release the amount we want?
Have we explored any alternatives to equity release?
How would equity release affect any amount we may be able to leave to our loved ones?
What are the costs likely to be, and what are the fees for?
How might equity release affect our tax position and eligibility for state benefits?
What if one of us was ill, and had to move out?
What if we wanted to move home at some point in the future?
Could any other people live in the property after we take out equity release?
What happens to our home when we die?
If you’re choosing between different equity release products and/or providers, you’ll also find out:
Who is the provider, and what’s their customer service like?
Have they signed up to the Equity Release Council’s Statement of Principles?
How long will it take to set up the arrangements, and how will they deal with any valuation and surveying work required?
When will we receive the money?
Can we make repayments, and will there be charges if we do?

After the meeting

I’ll always be pleased to provide ongoing assistance throughout the equity release process and beyond, according to the arrangements we make. You may have the opportunity to:

Attend a follow-up meeting, with ongoing advice to review your financial arrangements in light of your changing circumstances. You need to make sure that the rest of your finances still fit your needs.
Consider issues such as wills and powers of attorney, or whether you’ve made provision for any long-term care which you may eventually need.

I’ll help you to get a clear idea on what happens next, so you can understand the timescales involved throughout the process. This will include information on any surveying and legal work which may be necessary. If we decide to go ahead, I’ll work with third parties to manage the process from application to completion.

Finally…
Remember, good communication is one of the most important things you can get from your adviser. Never hesitate to contact me at any stage, before or after your initial meeting, if anything isn’t clear.

There are two equity release options:

Lifetime mortgage: you take out a mortgage secured on your property provided it is your main residence, while retaining ownership. You can choose to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.

Home reversion: you sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. You can ring-fence a percentage of your property for later use, possibly for inheritance. The percentage you retain will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.

To help you evaluate the options here are some case studies.

John and Beryl

Married in their late teens, retired bus driver John (67) and former shop worker Beryl(68) bought their house in Leeds, for £30,000 not long into their marriage. Their two children now have families of their own, and live nearby.

Mid to late 60s
2 Children
Low savings and pension

Mindset: John and Beryl never expected their house to be worth so much, and now they want to make the most of the extra money in retirement.

Tom and Rebecca, both 58, took out an interest-only mortgage on their Birmingham home. At the time Tom worked in car manufacturing, while Rebecca had a career in
retail.

Age 55-60
Approaching retirement
Limited savings
Little or no pension

Mindset: Taking out an interest-only mortgage seemed like a good idea at the time, but now Tom and Rebecca need to release some money for a secure retirement. Tom was made redundant and his new job as a handyman covers the bills and basics, but leaves little extra. Meanwhile, Rebecca also had to stop work due to a long-term medical condition. The couple don’t have children.

Married business owners Chris (65) and Alice (64) live in Bournemouth and have a son and a daughter. Their son, in his late 20s, lives at home and has been struggling
to save enough for a deposit on a flat in the area on his current salary. Their daughter lives nearby and is pregnant with her first child. She and her husband are financially
comfortable.

55-late 60
Childrenl
Approaching, or in, retirement

Mindset: Chris and Alice want to helptheir son get on the property ladder.

Married couple Andrea and James are in their mid-70s and have been enjoying a relatively comfortable standard of living until now, thanks to adequate private pensions. Their two children have successful careers and have no need for financial support, so Andrea and James have been doing all the things they couldn’t do when the children were young: carrying out home improvements, travelling abroad and upgrading their car.

Mid-70s
Children
Private pensions
Health concerns

Mindset: Andrea and James want to adapt their home to adapt their home to allow them to stay in their home for as long as possible.

Lifetime Mortgages

You take out a mortgage secured on your property provided it is your main residence, while retaining ownership. You can choose to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.

Home Reversion

You sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. You can ring-fence a percentage of your property for later use, possibly for inheritance. The percentage you retain will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership

Mid to late 60s GerryK 2017-09-11T18:21:51+00:00

Mid to late 60s

Debt in retirement

Optimise annual income GerryK 2017-08-16T00:25:44+00:00

Optimise annual income

Optimise inheritance GerryK 2017-09-11T18:17:50+00:00

Optimise inheritance

Intergenerational wealth transfer

Lifetime Mortgage GerryK 2017-09-11T16:29:07+00:00

Lifetime Mortgage

Home Reversion GerryK 2017-08-16T07:58:54+00:00

Home Reversion

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