Over 55s' Finance
Over 55s' Finance
Preparing financially for later life can be a challenge. Plus, getting older can also be an emotionally tough experience requiring you to make difficult decisions. At The Financial Detectives we want to save you, and your family, the hassle and added trouble caused by neglecting these decisions. The over 55s’ package is designed to help you find the right products for handling your estate during your life, securing the future of your estate after you die and all sorts of other financial products that you may need at this stage in your life. We want what’s most appropriate for YOU.
Table of Contents
Why consider Equity Release?
- Repaying your existing mortgage or other debts to reduce your monthly outgoings
- Home Improvements
- Take the whole family on a special holiday
- Helping children with a deposit for their first home
- Or just supplementing your income for a more comfortable retirement
What is Equity Release?
Equity Release is simply the process of turning the equity in your home into cash and is designed to help qualifying clients who either own their home outright or have a relatively small mortgage outstanding. You can either borrow against the value of your home, or sell all or part of it in return for a lump sum or a regular monthly income (or both in some instances). The loan will be repaid at a later date when the property is eventually sold.
Why is equity release becoming more popular?
The realities of later life are changing. Few of us are lucky enough to have a final salary pension and annuity rates have diminished. Meanwhile, we’re living longer and able to stay more active into later life, which means we need an income for more years. You might also find that your house needs a new roof and you’d rather not blow your savings to pay for it. And, if you have children you’ll know how hard it is to get a deposit together for their first home. These pressures mean we have to find different ways to fund our later years and equity release is just one of the ways we can do this.
Does equity release still deserve its bad reputation?
“Modern equity release products are different from the past. The principal is still the same: using some of the money tied up in your home to fund things you want to do in later life. You may remember horror storied of the past, where people inherited a significant debt as well as losing their parents’ property. That can no longer happen. All policies now come with a ‘no negative equity’ guarantee.
In addition, the market is fully regulated by the Financial Conduct Authority who also insist on additional training and certification specifically to sell and advise on equity release products.
How does equity release work?
There are 2 basic types of product: lifetime mortgages and property reversion.schemes.
These are interest only loans secured against your home. Any unpaid compounded interest plus the sum advanced are recovered from your estate.
This is where you are paid a sum of money in return for a share of your property. The lender gets the same percentage share of your property value (including any appreciation) when you die.
There are also hybrid schemes with elements of both.
* Equity release includes Lifetime Mortgages and Home Reversion Schemes. We can advise and arrange Lifetime Mortgages and will refer to an approved specialist for Home Reversion Schemes *
EQUITY RELEASE CASE STUDIES
For one of our clients, an elderly gentleman, his car had stopped being roadworthy and his house desperately needed a new door and windows but he simply couldn't afford to do anything about it. By using equity release it gave him a lump sum to be able to get a new car and make the home improvements he so desperately needed so he would be able to be more comfortable in his home.
In another case, a couple wanted to assist their children with deposits on a first time home purchase. By releasing some of the equity tied up in their home, they were able to have the satisfaction of helping their children while they were still alive to see it!
Lasting Power of Attorney
Why should I make a Lasting Power of Attorney (LPA)?
No one wants to think about becoming incapable of making their own decisions through illness or accident. But it happens to people of all ages. Many people think that if something happens to them in the future and they can’t make their own decisions about issues such as finances, property, healthcare or personal care, for example, their family or friends can simply take over. It isn’t true.
Just as you need to make a will to determine what will happen to your assets when you die, you need to put a Lasting Power of Attorney (LPA) in place if you want to make the decision yourself as to what will happen to you if you lose mental capacity. It allows you to plan ahead to make sure that all your wishes are respected, no matter what happens.
There are two types of Power of Attorney to deal with different aspects of your life – ‘Health and Welfare’ and ‘Property and Financial Affairs’. You can choose to make one type or both. They are legal written documents that allow someone else to make decisions or take action on your behalf. This person is called your Attorney and you decide the most appropriate person(s) to hold this authority. You also decide exactly what they’re authorised to do and under what circumstances.
Benefits of having a Lasting Power of Attorney:
- The reassurance of knowing that all your affairs are taken care of as you would wish
- Protecting your loved ones from any unnecessary stress and from needing to apply for, pay for and maintain a deputyship
- Planning ahead for the future with confidence
Peace of mind for you and your family
Thinking about your Will and how you would like your estate to pass on death can be an uncomfortable thing to do, however it is a thoughtful and responsible way to spare your family the emotional and financial burden of organising your estate at the time they can least cope.
Professional Estate Planning will protect your assets and give you the peace of mind knowing that you have safeguarded the future of your loved ones.
Did you know that without a Will:
- If you are not married your partner will not receive anything
- Ex-partners could make a claim on your estate
- Children from previous relationships may not receive anything
- Children under 18 may be taken into care whilst the courts decide who looks after them
The Reasons to use The Financial Detectives:
- Free advice on Wills and consultations over the phone, at home or in our office
- Bespoke, Comprehensive Wills written for you
- Professional, trusted and friendly advice for Wills and Estate Planning
- No obligation to proceed after advice given
Why Choose a Funeral Plan?
Funeral plans are a way of paying up front for your funeral – a pre-paid funeral plan is guaranteed to cover the cost of the funeral services included in your plan, no matter how much prices rise or how long you live.
Your plan provider will pay the funeral director directly, which means your family will not have to worry about sorting your finances or doing administrative tasks, at an already emotional time.
We can select from a range of Funeral Plan providers to give you the biggest choice.
Benefits of a funeral plan –
- It freezes the cost at today’s prices
- Protect loved ones – effective and affordable way to protect your family and loved ones against the burden of rising funeral costs.
- Personalised to you
- Affordable and flexible
Probate (Estate Administration)
Estate administration is the process of dealing with a person’s legal, financial and personal tax affairs after they have died.
It involves far more than obtaining a Grant of Probate (Confirmation in Scotland) which is just one element of the process. This means dealing with all their assets (such as property, shares and personal possessions), paying debts and paying any Inheritance Tax and Income Tax. Whatever is left in the estate is then transferred to the beneficiaries. Estate administration can be extremely complex and is required after every death, whether or not there is a Will.
In order to complete the estate administration process, there are a number of tasks that
need to be carried out, including:
– Notifying beneficiaries and dealing with their questions
– Redirecting post and cancelling or transferring utilities
– Dealing with any Income Tax liabilities
– Advising on the distribution of assets to avoid or mitigate tax liabilities
– Calculating and paying Inheritance Tax where relevant
– Dealing with specialist legal work
These are just some of the tasks that are involved and every estate is different. While some people decide to administer the estate themselves, this can take a significant amount of time and effort; and it leaves them personally liable for any mistakes made during the process.
Whether their estate is simple or complex, the issues faced with the death of a loved one are rarely straightforward. That’s why The Financial Detectives has partnered with Kings Court Trust, our preferred provider of estate administration, to deliver an estate administration service.
Most of us are not used to dealing with the complex requirements of estate administration, especially at a time when financial matters are the last thing on our minds. Kings Court Trust is one of the leading specialist estate administration service providers in the UK and, like us, they place their clients at the very heart of everything they do.
Do you want to start a pension scheme, manage your pre-existing pension or review it?
At The Financial Detectives we can recommend you to one of our trusted partners to help you start and/or manage your pension.
THE KNOWLEDGE HUB
Q. What is a mortgage?
A. A mortgage is a loan taken out to buy property or land. Most run for 25 years but the term can be shorter or longer. The loan is ‘secured’ against the value of the home until it’s paid off. If you can’t keep up your repayments the lender can repossess (take back) your home and sell it so they get their money back.
Q. How much deposit do I need?
A. Usually a minimum of 5% of the purchase price. The bigger the deposit, the better the interest rate, the lower your monthly repayments, the cheaper the mortgage. The difference between a 5% and a 10% deposit is huge: the next big jump is at 20%, then 40%. So if you have any chance of pushing yourself up a band (or perhaps ask your parents to help), do it!
Q. What does ‘LTV’ mean?
A. It stands for ‘loan-to-value’ which is the percentage of the property value you’re loaned as a mortgage. In other words, its the proportion that you’re borrowing.
WHY USE THE FINANCIAL DETECTIVES IF YOU'RE OVER 55?
• We have access to the whole of market, including exclusive rates not available on the high street.
• We’re an independent, family run business – we are not ‘tied’ to any lender, insurer, solicitor or surveyor. We can therefore give broad, unbiased advice.
• We have 20 years of mortgage and insurance experience, therefore our advice can be trusted.
• We don’t get paid until the case completes so we have as much incentive as you to get your case completed!
• 5 star Google and Facebook reviews proving our commitment to exceptional customer service. We give our clients a dedicated advisor and processing team, who will ‘hold your hand’ throughout the entire process.
Did you know?
“Over 50% of our clients are referrals from other customers we have helped… we must be doing something right!”