Equity release firm In Retirement Services has gone into administration with Deloitte appointed as administrators.
Carlton Siddle, Robin Allen and Nick Edwards from Deloitte were appointed as joint administrators on Friday to manage the administration process for In Retirement Holdings Limited, In Retirement Services (Reversions) Limited and Equity Release Limited.
Deloitte says that as the financing for the equity release plans came from other financial institutions In Retirement Services has no financial or ownership interest in the properties that have been subject to equity release arrangements.
Robin Allen, joint administrator of In Retirement Services, says: “Unfortunately, it has not been possible to secure funding to enable the group to remain outside of an insolvency process.
“We are currently working with management to determine the best strategy for maximising value for the group's stakeholders and preserving the continuity of services to its 14,000 customers.”
The company was backed by private equity house 3i and was part of the equity release trade body Safe Home Income Plans.
Customers of In Retirement Services with queries should call use their usual point of contact within the In Retirement Services group.
Monday, 17 August 2009
Equity release to see big business in 2029
There will be an increased uptake in equity release in 2029 so elderly people can enjoy a good standard of living, according to research by retirement planning group Sovereign Reversions.
The firm said that by 2029, there will be 15.1m people over the age of 65, a 50% increase in the number of pensioners today. By 2029, this group will sit on housing equity worth £1.5trn, an increase of 88% on the current level of £800bn.
The firm said that as these over 65s prepare for retirement, they will find finances much tighter due to pensions becoming more dependent on uncertain investment outcomes and the official retirement age rising which will force people to work longer before being entitled to a state pension.
Graeme Marshall, chief executive of Sovereign Reversions, said that for many, the value of their home will be the most obvious source of cash to support their income in retirement.
He said: "There will be no alternative to ensure pensioners have can enjoy a reasonable living standard in their old age."
Sovereign Reversions used Office of National Statistics data on pensioner households and housing tenure and Department of Communities and Local Government (DCLG) data on house prices in its study
The firm said that by 2029, there will be 15.1m people over the age of 65, a 50% increase in the number of pensioners today. By 2029, this group will sit on housing equity worth £1.5trn, an increase of 88% on the current level of £800bn.
The firm said that as these over 65s prepare for retirement, they will find finances much tighter due to pensions becoming more dependent on uncertain investment outcomes and the official retirement age rising which will force people to work longer before being entitled to a state pension.
Graeme Marshall, chief executive of Sovereign Reversions, said that for many, the value of their home will be the most obvious source of cash to support their income in retirement.
He said: "There will be no alternative to ensure pensioners have can enjoy a reasonable living standard in their old age."
Sovereign Reversions used Office of National Statistics data on pensioner households and housing tenure and Department of Communities and Local Government (DCLG) data on house prices in its study
Thursday, 7 May 2009
Equity Release - Considerations
When looking into equity release it is essential that you seek the advice of a specialist such as a financial advisor. A financial advisor will be able to assist you in determining whether this step is the right step for you. The first thing you should know is that equity release should be considered as a last resort option.
What can the cash obtained through equity release be used for? The answer is just about anything you can think of. It can help with Inheritance Tax planning or any other type of assistance you may need. Here is how it works. There are two primary ways that equity release works. The first is Reversion and the second is Lifetime mortgage.
Under the Reversion plan you could sell all or part of your home for tax free cash. Keep in mind however that the percentage of the home that you sell will not equal the cash you will get. Normally, you will get less than the percentage value of your home. Under the lifetime mortgage plan you are granted what is called a tax free loan. It is borrowed against the security of your home. On this plan you make no repayments until the house is sold. This is usually at the time of demise or when you would enter a care facility.
On lifetime mortgages there is also the interest that is charged though is not collected and it is cumulative which means that you will, at the end of the loan not only pay the interest on the principal amount that was borrowed but also interest on all the interest that accrued. Confusing and expensive sounding right, this is why when considering an Equity Release Considerationsit is essential to obtain assistance through a financial advisor.
Here is the difference between the equity release options with Reversion you will for certainty give your beneficiaries the proceeds percentage from the sale of the home that was left over from the release. For example, if you did an equity release under this method for 40% of your home then your beneficiaries would receive the proceeds of 60% of your home when it sold.
Lifetime mortgage works a little differently. The big difference is that if you die during the early part of the plan within the first couple of years for example. Your beneficiaries are going to be better off. However, if you do not you may end up reaching something called Negative Equity. This means that your loan would actually exceed the amount that could be obtained through the sale of the house. Not only leaving you with nothing to provide for your beneficiaries but also a mounting debt for them to pay off.
There are other factors to consider but these are the biggest factors that appear when considering equity release and the largest reasons why the market as a general rule views equity release as a final option measure to be used primarily in dire emergencies where there are no other possible options.
If you are considering an equity release it is important that you talk with your financial advisor and thoroughly discuss what each option could mean for you both what you will receive and what you may end up having to pay back. Your financial advisor will be able to assist you in determining if equity release is right for you and if it is which of the two schemes are going to be the best options for you.
Equity Release Considerations can provide you with a way to provide for your family when it comes to inheritance taxes or it can be used in an emergency to provide your family with the funds that are needed to ensure their security but this type of financial step is not without significant risk. In order to be sure that this is the only and best option for you take the time to obtain the counsel of a financial advisor.
What can the cash obtained through equity release be used for? The answer is just about anything you can think of. It can help with Inheritance Tax planning or any other type of assistance you may need. Here is how it works. There are two primary ways that equity release works. The first is Reversion and the second is Lifetime mortgage.
Under the Reversion plan you could sell all or part of your home for tax free cash. Keep in mind however that the percentage of the home that you sell will not equal the cash you will get. Normally, you will get less than the percentage value of your home. Under the lifetime mortgage plan you are granted what is called a tax free loan. It is borrowed against the security of your home. On this plan you make no repayments until the house is sold. This is usually at the time of demise or when you would enter a care facility.
On lifetime mortgages there is also the interest that is charged though is not collected and it is cumulative which means that you will, at the end of the loan not only pay the interest on the principal amount that was borrowed but also interest on all the interest that accrued. Confusing and expensive sounding right, this is why when considering an Equity Release Considerationsit is essential to obtain assistance through a financial advisor.
Here is the difference between the equity release options with Reversion you will for certainty give your beneficiaries the proceeds percentage from the sale of the home that was left over from the release. For example, if you did an equity release under this method for 40% of your home then your beneficiaries would receive the proceeds of 60% of your home when it sold.
Lifetime mortgage works a little differently. The big difference is that if you die during the early part of the plan within the first couple of years for example. Your beneficiaries are going to be better off. However, if you do not you may end up reaching something called Negative Equity. This means that your loan would actually exceed the amount that could be obtained through the sale of the house. Not only leaving you with nothing to provide for your beneficiaries but also a mounting debt for them to pay off.
There are other factors to consider but these are the biggest factors that appear when considering equity release and the largest reasons why the market as a general rule views equity release as a final option measure to be used primarily in dire emergencies where there are no other possible options.
If you are considering an equity release it is important that you talk with your financial advisor and thoroughly discuss what each option could mean for you both what you will receive and what you may end up having to pay back. Your financial advisor will be able to assist you in determining if equity release is right for you and if it is which of the two schemes are going to be the best options for you.
Equity Release Considerations can provide you with a way to provide for your family when it comes to inheritance taxes or it can be used in an emergency to provide your family with the funds that are needed to ensure their security but this type of financial step is not without significant risk. In order to be sure that this is the only and best option for you take the time to obtain the counsel of a financial advisor.
Norwich Union Life results show strong equity release growth
The firm said this underlined how customers and advisers alike had benefited from its proposition enhancements and the strengthening of key IFA relationships in 2008. Volumes in Q1 had been driven by the significant pipeline of business of £75m coming out of 2008.
Dominic Fraser-Smith, group manager for Norwich Union equity release, said it regained the number one position in the overall market at the end of 2008 because it had achieved a 27% market share in the IFA channel in Q4.
“We have been prudently managing our risk in the turbulent property market, reducing our LTV scale twice since November 2008 and limiting the percentage of property value we will offer for higher risk properties.
He added: “The current market position has an upside for equity release in that with fewer house sales and difficulties getting credit, equity release remains an attractive option.”
Tuesday, 14 April 2009
Cheltenham & Gloucester plc
Cheltenham & Gloucester plc (C&G) is a mortgage and savings provider in the United Kingdom, a subsidiary of Lloyds Banking Group. C&G specialises in mortgages and savings products. Previously, C&G was a building society, known as the Cheltenham and Gloucester Building Society. C&G is one of the largest mortgage lenders in the UK. Its headquarters are in Barnwood, Gloucester, Gloucestershire, England.
Cheltenham & Gloucester Mortgages
C&G mortgages are built around you. Find a range of mortgages such as fixed-rate, tracker, or buy-to-let mortgages. Whether you’re a first-time buyer, ...
Insurance Providers
Cheltenham & Gloucester Mortgages
C&G mortgages are built around you. Find a range of mortgages such as fixed-rate, tracker, or buy-to-let mortgages. Whether you’re a first-time buyer, ...
Insurance Providers
Mortgage Further Advance
A mortgage loan is a loan secured by real property through the use of a note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.
Further advance
This is an additional loan by a lender to the borrower.
If you wish to raise money against the value of your home - go see your home lender.
A further advance to release more money on your home, is sometimes referred to as a second mortgage. It will usually be secured by the existing mortgage deed.
You may wish to take out a further advance to pay for property improvement, a new car, school fees, or to buy shares, to invest in a private business etc.
If the equity in your property (i.e. it"s worth substantially more than the outstanding mortgage) you"ll be able to extend your loan - although not necessarily at the same interest rate as your existing home loan.
Further advance
This is an additional loan by a lender to the borrower.
If you wish to raise money against the value of your home - go see your home lender.
A further advance to release more money on your home, is sometimes referred to as a second mortgage. It will usually be secured by the existing mortgage deed.
You may wish to take out a further advance to pay for property improvement, a new car, school fees, or to buy shares, to invest in a private business etc.
If the equity in your property (i.e. it"s worth substantially more than the outstanding mortgage) you"ll be able to extend your loan - although not necessarily at the same interest rate as your existing home loan.
Releasing Equity By Remortgaging
Thousands of people switch mortgage provider each year, some to save money, others as a means to borrow more cash.
What factors should you bear in mind when switching mortgage providers.
Can remortgaging really save money?
It depends. It is estimated that more than half of all borrowers are continuing to pay over the odds for their mortgage each month. Usually these people are paying the lender's standard variable mortgage rate. There will be lower rates available from other providers.
But this is not the whole story.
In recent years, banks and building societies have been hiking mortgage fees to subsidise attractive headline interest rates. So called mortgage arrangement fees have sky-rocketed as have charges for redeeming a mortgage.
As a result, you have to do the sums to make sure that what you gain through switching provider - a lower rate of interest - is not lost through higher charges.
If you are tired into a remortgage a secured loan (second mortgage) could also be used to release equity from your property
Many people consider taking out a refinance remortgage to consolidate existing debts into one manageable monthly mortgage payment. ...
Subscribe to:
Posts (Atom)