Rising UK property values have left many people sitting on a very valuable financial asset at a time when their more liquid assets (savings, investments and pensions, for example) have not produced the capital and income they require to maintain their lifestyle. Equity release is one way of unlocking some of the value in your home and forms a valuable part of ongoing financial planning.

Freedom in retirement

Retirement is your time to enjoy the fruits of years of hard work. In the right circumstances, raising money by releasing equity in your home can free up funds to help you achieve your dreams – while maintaining all important financial stability.

The previously poor reputation of equity release has been eradicated by tighter regulations and better education. It now forms an important part of holistic financial planning and is consistently one of the top 10 most popular financial product areas that people research online.*

*Financial Adviser magazine 10.05.07 – searches on IFA Promotions’ website

What is equity release?

Equity release splits broadly into two product types. The best plan for you will depend on your individual circumstances:

• Lifetime mortgages: an initial lump sum is paid out, usually at a fixed rate of interest, with the interest being rolled up and ultimately being repaid from your estate.

• Home reversion schemes: regulated since April 2007, these plans are effectively a sale and lease-back arrangement where part or all of the property is sold to a bank or other investor, but you retain the right to live there.

Why should you consider equity release?

Equity release can offer you the best of both worlds: a financially comfortable retirement, without having to leave your cherished home. Potential benefits of equity release include;

• A better home for today – make home improvements possible or adapt your home for later years when you may be less mobile.
• A place in the sun – if you’ve always dreamed of a cottage in the country, or in the sun, equity release could be your route to a life less hectic.
• Give in to the globetrotter – now you’re no longer bound by work, it could be time to see the world, without the worry of frittering away your pension.
• Treat the grandchildren – if you’d derive the greatest pleasure from giving your children or grandchildren a helping hand, equity release could be the answer.
• Dream drive – as you grow older, your car could become essential to your independence. A newer, more reliable model may eliminate costly repairs and give you peace of mind in motoring.

Financial Flexibility

As with many financial plans and products, releasing equity from your home has the flexibility to be tailored to your needs, often within a broader financial plan.

Paramount Group’s trained and experienced specialists understand that each individual’s needs are different. Whether you need

• A maximum one-off payment at the outset
• A smaller initial sum with a regular release of funds thereafter
• A regular income streamwe can help you find the financial plan to suit.
  

A safe haven for your savings

Equity release is a secure way of enjoying the value your home has built up. Plans are regulated by the Financial services Authority and endorsed by SHIP (Safe Home Income Plans), a company supported by the leading providers of home income and equity release plans. Launched in 1991, SHIP is dedicated entirely to the protection of plan holders and promotion of safe home income and equity release plans. Investors who choose SHIP members are assured that the lender will work only with suitably qualified advisers and adheres to a strictly enforced code of practice endorsed by Age Concern.

All SHIP-approved plans guarantee no negative equity, so there is never more owing than the value of your home. Your home remains your own to enjoy – even if it falls in value. And if the value goes up, your estate benefits.

Paramount Group works closely with SHIP-lenders, lawyers, accountants, other professionals and clients to bring peace of mind, financial freedom and, potentially, inheritance tax planning benefits in retirement.

Why Paramount? 

Paramount Group is an independent financial advisory service, which means we deal with the full range of SHIP-member lenders to secure the most fitting solution for each case.We foster long term relationships with our clients – and if required their families – so we are happy to meet with the children of anyone considering equity release to discuss the benefits of different options.

Our experienced, fully qualified advisers take time to understand clients’ requirements and provide a comprehensive source of independent advice across the full spectrum of financial services.

For more information on SHIP you can contact

Safe Home Income Plans (SHIP)
PO Box 516
Preston Central
PR2 2XQ

Tel: 0870 2416060

www.ship-ltd.org