B Advised Ltd

1) What is equity release?

• An important part of retirement planning to making your retirement more comfortable, and to open up exciting new possibilities
• An equity release scheme lets you raise money from your property - as either a lump sum or regular income, or both
• There are two types of equity release scheme available in the market
• A home reversion involves selling all, or part, of the ownership of your home
• A lifetime mortgage involves taking out a new loan secured on your home
• In return both types will pay you a lump sum and/or an income

2) What can it be used for?

• Top up your retirement income
• Pay off a mortgage
• Make home improvements
• Buy a holiday home
• Help your children get onto the property ladder
• Or anything else you choose to use it for

3) What is a home reversion plan?

You sell all or part of your home, but you continue to live in your home
After you and your partner have died, your house is sold and the proceeds are split between the home reversion provider and your, or your partner's, estate

Home reversion plans are regulated by the Financial Services Authority (FSA)

FURTHER INFORMATION
Visit the FSA's websites www.fsa.gov.uk and their
Money Made Clear website www.moneymadeclear.fsa.gov.uk

4) What is a lifetime mortgage?

• You take out a new loan secured on your property
• You do not make repayments, instead interest is rolled up to be paid when the scheme is ended
• You continue to own and live in your home

Lifetime Mortgages are regulated by the Financial Services Authority (FSA)

FURTHER INFORMATION
Visit the FSA's websites www.fsa.gov.uk and their
Money Made Clear website www.moneymadeclear.fsa.gov.uk

5) Here are some questions to think about

• Is your retirement income lower than you'd like it to be?
• Would you like to top up your income to make your retirement more comfortable?
• Would you like a lump sum to spend how you choose?
• Perhaps you'd like to pay off your mortgage, make some home improvements, or buy a holiday home?
• Perhaps you'd like to help your children get onto the property ladder?
• Maybe you would like to pay for your grandchildren's university fees

6) What should I bear in mind?

• There might be ways to maximise your income without taking out a new financial product:
• ensure you're receiving all the state benefits you're entitled to
• selling your house and moving to a cheaper one, or downsizing as it's known
• sell up and rent a property
• Also bear in mind that if you currently receive or anticipate receiving means-tested state benefits, you might lose your entitlement to them if your circumstances change and your income or savings increase

These are some of the reasons why you must get impartial, specialist advice before doing anything.

7) How does equity release work?

Both home reversions and lifetime mortgages work very well - but for most people it will be down to their individual circumstances which one suits them best.

Here are some of the things you need to take into consideration:

• how much money you can raise
• what will be left for your heirs
• the impact of inflation on your circumstances, including your income and the value of your property
• whether or not you can move into a nursing home without having to sell your house
• how much more you can raise in the future, and at what cost
• whether or not you'll be able to transfer the scheme to another house if you need to move at a later date, perhaps to be nearer to relatives

8) Is equity release safe?

• Equity release schemes such as home reversion plans and lifetime mortgages are regulated by the UK Government's Financial Services Authority
• Since 1991, equity release providers have introduced a number of plans through the Safe Home Income Plan (SHIP) organisation

It is vital that you are aware that 'sale and rent back' and 'shared appreciation' schemes are not equity release products and are not covered under the SHIP schemes.

FURTHER INFORMATION

Safe Home Income Plans (SHIP) is a company supported by the leading providers of home income and equity release plans. It was launched in 1991 and is dedicated entirely to the protection of plan holders and promotion of safe home income and equity release plans. All participating companies are pledged to observe the SHIP Code of Practice.

Visit SHIP's websites www.ship-ltd.org

9) Should I take professional advice?

Taking out any equity release product is a major decision that will have bearing on the rest of your life

You should:

• always seek the guidance of a financial adviser to confirm that equity release is the appropriate solution to meet your financial needs
• obtain independent legal advice from a solicitor
• talk to your family so that they are aware of the full implications of equity release and can provide a reassuring sounding board

10) Where can I go for information?

If you'd like to do some more research before talking to a financial adviser, the following organisations have information on equity release for you to read.

Age Concern
www.ageconcern.org.uk

Housing Care
www.housingcare.org

Help the Aged
www.helptheaged.org.uk

The Council of Mortgage Lenders
www.cml.org.uk

Citizens Advice
www.citizensadvice.org.uk

SHIP, Safe Homes Income Plans
www.ship-ltd.org

Houseproud is a service run in partnership with many Local Authorities that offers a comprehensive home-improvement service and access to loans to cover their cost. Visit their website www.houseproud.org.uk

11) What you need to know from your financial adviser

• Whose products do you offer?
• Will you give me advice and make a recommendation?
• What will I have to pay you?
• What types of equity release scheme do you advise on?
• How many equity release products do you advise on?
• How many clients have you advised on equity release?
• If you charge me a fee, and I don't go ahead with the equity release scheme, will you refund the fee?
• Who regulates you? (your adviser should be authorised by the FSA for other business they do.)
• What do I do if I have a complaint?
• Are you covered by the Financial Services Compensation Scheme?

12) What your financial adviser will need to know from you

• Your current provisions for retirement
• Your family and dependants, health and benefits
• Your financial position
• Your objectives and priorities
• Your views on house price inflation
• How long you expect to live

This information will be needed in detail. Without it, your adviser won't be able to explore your options and make the right recommendation to you.

13) Grants and home improvement agencies

You can find information about eligibility for local authority grants that may be available to you from your local Home Improvement Agency (also known as Care and Repair or Staying Put agencies).

Contact details for their national co-ordinating bodies are shown below;

England
Foundations Telephone: 01457 891 909 www.foundations.uk.com

Wales
Care & Repair Cymru Telephone: 029 205 76286 www.careandrepair.org.uk
Scotland

Care & Repair Forum Scotland
Telephone: 0141 221 9879 www.careandrepairscotland.co.uk

Northern Ireland
Fold Housing Association
Telephone: 02890 428314 www.foldgroup.co.uk

14) State benefits and pension credits

Check to see if you are receiving what you are entitled to

The Pension Service:

• Part of the Department for Work and Pensions
• This Government website provides information about pensions and pensioner benefits, for those planning for the future, about to retire or already retired. Visit their website www.thepensionservice.gov.uk
• Age Concern
• Help the Aged

Equity Release statement:

We normally charge a fee for Equity Release advice, however this will be dependent on your circumstances. Our typical fee is £299

AN EQUITY RELEASE PLAN WILL REDUCE THE VALUE OF YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFIT. TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.