|Over 60 and need to raise some cash?
Many older people find themselves short of money yet often own a valuable property. There
are a variety of schemes that can be utilised in order to obtain a capital sum or income
to provide the homeowner with the immediate resources they need to enhance their quality
of life whilst retaining the major part or some of their asset for the ultimate benefit of
The most popular ways to raise money on your property are:-
1. Capital Release Plan
2. Home Reversion Plan
3. Home Income Plan
CAPITAL RELEASE PLANS
Capital Release (or Equity Release) Plans are very popular. A loan is taken out based on
the value of your property. The loan is secured on your home and provides you with cash to
spend or save as you choose. There are no monthly repayments and the interest on the loan
rolls up each year. Both the interest and capital is repayable when your home is sold,
when you move into long term care or after your death. Most schemes allow you to transfer
the "loan" to another property
HOME REVERSION PLANS
With this type of Plan you sell all or part of your home to a Company (usually an
Insurance Company) and you continue to live in it as a tenant. In return the Company pays
to you a percentage of the value of the property by way of a lump sum or a regular income
for life. No interest or capital is paid to the Company during your lifetime but on your
death the whole of the property (or a part of it) passes to the Company. The loan is
repayable if the property is sold, or you move into long term care or after your death.
Most schemes allow you to transfer the "loan" to another property
HOME INCOME PLANS
With this type of Plan a loan is taken out and secured on your home but some of the money
must be used to purchase an annuity. The annuity provides you with a regular guaranteed
income for life. Part of the annuity income is used to repay interest on the loan and the
balance is paid to you to spend as you wish. This scheme has been popular in the past when
annuity rates were high.
POINTS TO CONSIDER
1.Does the Plan enable you to move home?
2.Does the Plan affect any benefits that you may be receiving?
3.Have you discussed your ideas with your family?
4.Is the Plan registered with the organisation SHIP (Safe Home Income Plans)?
We will of course be happy to discuss any of these Plans with you but we are unable to
give you advice as to which Plan you should choose. We will however be happy to introduce
you to an Independent Financial Adviser who will be able to recommend what option is best
for you and arrange the loan.
The cost depends on what Scheme or Plan you choose.
Any questions? Contact Susan Dawe on 823398.
Walter Smith & Co. Solicitors, 1 Augusta Street, Sheringham.
|OLDE TIMES ON
|20th September 2003 and Sheringham went back in time to
the 1940s. On Sheringham, Weybourne and Holt platforms there was a great deal to see, many
people dressed in the clothes and uniforms of the period. There were vintage cars,
military vehicles, gunfire and prisoners taken. I have to say I had the most delicious
Home-made Ginger Beer at Weybourne, it brought back fond memories of my youth.
My stop off at Holt allowed me to take a look at the stalls available and look at the
military displays. Then we were off back to Weybourne where the platforms were very busy.
Then back once more to Sheringham for a wander round the exhibits.
EXCELLENT AS USUAL