Divorce is an area where sound independent professional advice early on can make a real difference.
For example, a split where one party gets the home and the other get the cash and investments may seem fair at first. However, the fall out may be that one party is tied to a property which may not provide any income. Ideally we as, financial advisers should be involved as early as possible in the divorce process. We can help divorcing parties gain an understanding of the potential impact of any proposals and help both parties make informed financial decisions.
Lifetime mortgage could be an important part of the financial planning.
A Lifetime mortgage may help one party stay in the family home. There are often cost advantages to this. It can avoid stamp duty and removal costs for the person who remains in the home. It can also create less upheaval both physical and emotionally. This could provide valuable emotional security and continuity for the person who remains in the home. Additionally, grown-up children and their families could still have access to the ‘family home’ and will still be able to visit.
Equity release could be used to ‘buy out’ the other partner, providing part or all of the funds required to secure alternative accommodation.
Lifetime mortgages could be an option to help you access additional money to help in retirement. One party may have been granted a larger share of capital assets through the divorce process. They may soon then realise they need more income. There may be unforeseen expenditure, such as a leaking roof or unplanned car repairs. Such expenditure can present a financial burden on a single-persons household budget. A lifetime mortgage could provide access to additional funds. Remember that the money released is free of tax.
Any lifetime mortgage will need to be part of a much broader financial planning discussion with us. Remember that the loan is secured against your home. Interest is charged on the total loan amount plus any interest already charged, and the amount owed grows quickly and reduces the equity left in the property. A lifetime mortgage will reduce any inheritance and may affect entitlement to State Benefits. It’s important that you consider other options to borrow money which may be more cost-effective.
How can we help you at Anstee & Co with lifetime mortgages.
Entering into an equity release plan could change your life for the better, but as it is a long-term financial commitment, It is vital you take professional independent advice. Anstee & Co are Independent Financial Advisers and members of The Equity Release Council. We are registered with the Financial Conduct Authority.
There are many factors involved in equity release and the process may seem complex and time-consuming. Our expert team of independent advisers will support you at every step and do most of the work for you. Simply contact us and we can guide you through the process from start to finish.
We have offices in
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Birmingham, West Midlands
- London, Central London.
Our team of independent financial advisers also make use of meeting rooms in Wellingborough, Northampton, Towcester and Worcester.
Meetings can also be arranged at your home at a time that is convenient for you.
Why not contact us today to see how we can help. The first meeting is free and without obligation.
Additional articles by Peter Anstee