Equity release may be beneficial for asset rich, cash poor borrowers - Published:05/12/07
Bankruptcy is "becoming more and more palatable" to those in serious debt, according to Thomas CharlesThree-quarters of populace in the UK do not understand how a one per cent dissimilarity in mortgage tax would affect their loan, according to new researchMoneyExpertcom - Equity release may be beneficial for benefit rich, cash deprived borrowers - 10/04/2007Homeowners that are "asset rich but cash deprived" can benefit from utilising so-called equity release schemes, a structure society has advisedSuch schemes take the form of a secured loan against the proprietor's property and can in effect be a second mortgageA Norwich Union spokeswoman said that captivating part in an equity release scheme can have "considerable crash in allowing people to access cash they would be unlikely to get any other way"Sarah Horner additional that equity let go can also allow people who need money "to stay in their homes instead of having to slim down or move"And she explained: "People who've bought their house 20-25 years before, the amount of equity tied up in it is so much more than they would have paid for it - so that obviously does have an impact"In related information, it was revealed today by Halifax land Agents that the majority of house hunters are looking for a property "in shut proximity to the scenery"A quarter of respondents to the poll conducted by the body supposed this was a key criteria.
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Norwich Union building insurance covers wet pets - Published:05/09/07
In good news for pet owners whose house is at danger from floods, Norwich Union building insurance will cover the temporary relocation of the animal, should the worst happenA representative from Norwich Union said that people who have buildings cover should be clever to claim the costs of putting their pet in a kennel or a cattery if the creature is at risk"We will pay, as part of the alternative accommodation, under a claim for flood, for reasonable accommodation operating cost for you and/or your pet," he supposedHowever, the spokesperson pointed out that actual injuries would not be enclosed by building coverEarlier this week, Sainsbury's Pet Insurance claimed that 34 per cent of the UK's combined cat and dog inhabitants are.
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Is equity release a good move? - Published:13/03/07
Betty and Ted Trowbridge love their house on the Isle of Wight The pair retired there 20 years ago after running a pub for many existence in Oxfordshire Now Betty, 74, and Ted, 83, are keen to carry out house improvements and improve their carThey also want to add a shower space downstairs in the event that either of them becomes less mobileThe couple's semi-detached home in Ryde is value £200,000 and builders say improvement work will price £20,000Three months ago, they started looking into evenhandedness release to fund the work and met with an adviser from Prudential's life mortgage divisionIt was important to the couple that they had a face-to-face meeting because they had plenty of questions about the implications of equity release, particularly as they have four grown-up children'We looked at a few options before contacting Pru,' says Betty 'I thought the lifetime mortgage alternative was the right one and meeting the adviser helped us approach to the right decision'Betty and Ted's adviser, Ed base, was with Pru's direct sales power until 1999 - it closed in 2001 - and rejoined the company to work in face-to-face recommendation for equity let go when the service launched in August last year He says business is thrivingBetty and Ted's £20,000 mortgage will come through in the next few weeks, so building work on their home can begin Interest on the loan, set at 669%, will roll up and will be added to their loan during their lifetimeThe amount anyone can borrow on a life mortgage relative to the home's value depends on their age There is nothing to pay now and Betty and Ted can wait in their home until they die if they wishThe loan and interest will be repaid out of their land when the home is sold, usually on the last death If this was in ten years, in Betty and Ted's container, the amount repaid would be £37,332 It would go up to about £51,000 in 15 yearsBut even if property prices drop or the couple live longer than expected, the amount owed can never be more than the property's value This is a obligation of all equity let go productsToday's 50 and 60-year-olds will have a combined £14 trillion in equity in their properties by 2020, says marketplace psychoanalyst DatamonitorClearly, the equity release market is set to grow But there are other choices obtainable and Peter Fisher at Help the Aged's independent equity let go advice service says homeowners should approach the decision with caution'meet as much information as possible and research your options,' says Fisher 'engage your children and think about what other savings you have'About half of homeowners who seek advice from Help the Aged finish up not going down the equity release route, opting for assist from their relations, downsizing or claiming benefits they did not realise they were entitled toJanet Davies of Warwick Butchart connections in Bidford-on-Avon, Warwickshire, which specialises in mind home funding, says: 'An independent financial adviser, ideally with qualifications in lasting care planning, together with advice from a solicitor, is the most excellent approach'Consumers require to understand the implications of their choice It will affect the legacy you leave your brood, it could impact on any condition benefits you claim and there could be penalty for long-term care funding if that is needed at some stage'The alternative to a lifetime mortgage is a home deterioration plan There are a number of providers of both life mortgages and home reversions, including Bristol and West, GE Life, input Retirement Solutions and Norwich UnionThe industry association Ship (Safe house Income Plans), which represents 95% of the market, has details of providers With a house reversion plan, owners sell all or part all of their home to a bank or insurance company in go back for a lump sum and the right to exist in the property for lifeThe sum salaried depends on the applicant's age and health, but is always less than the value of the proportion of the property in use by the finance company Reversions are less popular because they are not regulated by the Financial Services Authority, however, the FSA will begin overseeing the marketplace next month life mortgages have been regulated since October 2004Frank and Elizabeth Johnson took out a deterioration plan seven years ago with Home & assets, based in Bedford The couple who were both 71 at the time, were given a lump sum in return for a piece of the value of their three-bedroom house in Weston-super-Mare, Somerset They received independent financial and legal advice'We were looking to addition our retirement income as I only have a small confidential pension,' says forthright, who before retirement worked in motor accident repairs 'After talking to our three children, we decided the deterioration suited our needs We like the supple nature, which meant we could move house without a problem'Frank, a eager pigeon fancier, and Elizabeth have used the money to put in a new bathroom and repair the top - and to enjoy a few holidays Last day, the couple, both aged 76, exercised the right in their reversion plan to move home without penalty They now live in a novel property in Rainham, Kent, near their two daughtersDOWNSIZING: go out and Don Lawson chose in the direction of move in the direction of a cmaller propertySelling up and moving to a cheaper, smaller home is almost always the most cost-effective way to release equity because you realise the factual market value of your house A recent survey by specialist financial collection Saga revealed that 40% of retired people who found themselves hardup in retirement moved house to decrease their cost of livingOn average, downsizers release £112,000 of evenhandedness when moving down the ladder, says online estate manager propertyfindercom Sally Lawson, 69, and companion Don, 73, from Dorking, Surrey, sold their four-bedroom house, where they lived for 14 existence, for £320,000 in 2001 and bought a lesser cottage in Climping, West Sussex, for £250,000 Sally, a retired consultant and explanation manager for a cosmetics firm, says she and put on, who ran his own joinery commerce before retiring, needed to get at the money locked up in their homeThe couple, who have three grown-up children, were judgment the large property difficult to run 'We looked at equity release schemes, but we didn't think they represented high-quality value,' says Sally 'We didn't like the idea of charitable up part of our home to a bank or insurance company'Sadly, put on had a stroke in 2002 so the couple moved back to Dorking, where they live in a twobedroom Linden Homes flat with wheelchair right of entry 'I'm glad we downsized,' says Sally, who cares full time for put on 'It may have been complicated and expensive if we'd had an equity let go plan and needed to move'Contacts: Safe Home profits Plans, ship-ltdorg, 0870 241 6060; Financial armed forces Authority, wwwmoneymadeclearfsagovuk, IFA Promotion, unbiasedcouk, 0800 085 3250Select a loan term 12 months (1 day 24 months (2 years) 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 existence 120 months (10 years)Please select a type of cover Life cover Home and contents Car stop working services Health - medical Health - dental Travel Pet - afflict Pet - cat GOThinking about investing in possessions This is Money has the best information.
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