Key Advice Solutions Guide to Later Life Finance

What are the most commonly asked questions about equity release? Is equity release regulated?

Wills & lasting powers of attorney As you enter later life, your mind may turn to who you want to inherit your estate when you’re gone or ensuring you’re taken care of if you’re no longer able to do so yourself. With the Wills and lasting powers of attorney available through Key Group, you can take control of your future and beyond, and ensure those around you know exactly what you want. All Key Group's estate planners are fully qualified and members of The Society of Will Writers. They’ll listen to your wishes and provide sound advice on what’s best for you and your loved ones in the future, so you can take comfort your affairs are in order and concentrate on enjoying your later life. If you wish to add any estate planning fees to your equity release loan, these will attract compound interest.

What do people usually use the money for? Our customers spend the tax-free cash they release on many different things – some of the most popular are home improvements, repaying existing debts and clearing an existing mortgage. You should always think carefully before securing a loan against your home to repay existing debt. Can I take out equity release if I still have a mortgage? Yes; however, you’ll need to repay the mortgage using the money released. Any funds left over are yours to enjoy. What happens when I pass away? Your home will usually be sold once you and your partner either pass away or move into long-term care. The sale proceeds will be used to repay the amount you owe, and any money left will go to you or your estate. How is my home’s value assessed? Your property will be valued by an independent RICS registered surveyor so you can be confident of an unbiased opinion of your property’s worth, for mortgage purposes. How much does your advice cost? You can find out if a lifetime mortgage is right for you without it costing you a penny by talking to one of our expert advisers. Our fixed advice fee of £599 is only payable on completion of a plan.

Yes, equity release is regulated by the Financial Conduct Authority (FCA). Expert advice is also required before you can take out a plan. Will I still own my home? With a lifetime mortgage you'll always own your own home and have the right to stay in your property for as long as you wish. Will I ever fall into negative equity? All plans that we recommend meet Equity Release Council standards and come with the no negative equity guarantee, meaning you'll never owe more than your home's worth providing you keep to the terms of your plan. However, a lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future. Can I move house? Yes, your plan can be transferred to a new home (subject to criteria). Who handles the legal side of the process? An independent solicitor will need to be appointed to handle the legal side of the process for you. We want to make sure you’re comfortable with your decision, so can suggest solicitors with lifetime mortgage experience if you prefer. What is compound interest? All lifetime mortgages that we recommend are subject to compound interest. That’s where you pay interest not only on the original loan amount itself, but also on the interest that’s already been added. You can read more about this on page 14.

Wills A Will is a legal document that allows you to express your wishes about the people you want to inherit your money, property and possessions after you’ve passed away. Without one, the rules of intestacy will decide who inherits your possessions, property and money.

Lasting power of attorney A lasting power of attorney (LPA) is a legal document that gives the person(s) of your choice the power to deal with your affairs. These trusted people will be able to use these documents to act on your behalf whenever necessary. They’re important in the event that you may not be able to express how you want your property and financial affairs and/or health and welfare to be taken care of.

If another product is more suitable, we'll refer you to a different adviser within Key Group who can help. If you go ahead, you'll only be charged the same £599 advice fee you’d pay with us, even if their fee is usually higher.

28

29

Made with FlippingBook Ebook Creator