J Johnson Associates :: Independent Financial Advisers

Q - What is Equity Release?
A - The unlocking of capital sums and/or income from the value of your property.

Q - Who can utilise Equity Release?
A - Usually people age 60 plus who have a low mortgage or no mortgage.

Q - Why would people require Equity Release?
A - To supplement income, to provide lump sums for home improvements/cars/holidays etc. and generally change lifestyles for the better.
There is also a growing market for inheritance tax planning via equity release and this type of planning may have the spin off of keeping some of the asset value of the property out of the reach of local authorities should the mortgagee require Long Term Care in the future. This can be achieved by releasing equity and investing the monies in a trust which can provide income if required but would ensure that the capital invested and any future growth from it would not form part of the estate on death, subject to revenue potentially exempt transfer rules.

Q - Can people lose their homes if they use equity Release?
A - There have been and are several differing types of Equity Release Schemes. Unfortunately some in the past have led to people getting into difficulties. However if you seek advice from a Regulated Advisor registered with the Financial Services Authority, Law society or similar body you are protected against misleading information which might cause such problems in the future.
There is also a organisation known as S.H.I.P. (Safe Home Income Plans) that accredit schemes and approve certain Equity Release Companies that offer protection and guarantees with their products to ensure there is a no negative equity guarantee

Click here for more information on S.H.I.P

The Baby Boomers

THE IMPLICATIONS OF AN AGING POPULATION BOTH FOR THE INDIVIDUALS AND THE STATE.

The end of the Second World War signalled an explosion in the birth rate of the British Population. These Baby Boomers as they are known are now retiring or approaching retirement. As a result of the “Welfare State” more of this generation than ever before are looking forward to a long (longer than ever before) and prosperous (now debatable) retirement. The state, over the last 50 years or so, has benefited from the Baby Boomers because it is their tax and national insurance contributions that have footed the bill for the “Welfare State.”

Unfortunately the “Cradle to Grave” expectation of the post war generation, especially with regard to pensions is looking uncertain at best. The “Welfare state” has never been a funded arrangement – which means that today's contributions by way of taxation pays for today's requirements, i.e. old age pension, the NHS etc. It doesn't take a genius, therefore, to work out that the balance to support the system necessitates more people in employment than those in retirement. This, thanks to world peace (in the main), declining birth rates (because of another unique and massive factor never previously available historically ‘THE PILL') is not going to be the case in the next few decades. The outcome of these unique set of circumstances will present problems to all concerned. i.e. the state, those in employment and those retiring.

1.The State - because the level of benefits across the spectrum that we currently enjoy may not be affordable.
2.The Employed – because the burden of funding the welfare state falls upon them and there will be, for first time, more pensioners that workers.
3.The Retired – because the probability is that the real value of state pensions may have to fall because of 1 and 2 above.

Interest rates, pension annuity rates and share values have also dropped to record lows and as a result income levels from all forms of savings have dramatically reduced. When you add all this together you can see that there may be many aggrieved pensioners who will feel let down. They may not receive the level of benefits that they might have expected after a working lifetime of contributions.

The one saving grace in all of this is that many people approaching retirement are sitting on substantial asset values locked in their homes.
Many 60 year plus people have low or no mortgages on their homes.
Traditionally in the past people needing extra income in retirement moved to smaller properties to unlock some of the cash values built up in bricks and mortar and this is still an option for people.
However many people in retirement do not wish to uproots away from long established friends and neighbours and away from the house that holds many treasured memories.
You can't spend bricks and mortar so what other options are there?

There are several options open to people and one of them is Equity Release. But because Equity Release is such a specialist subject you should only deal with Financial Advisors and Solicitors who understand the differing types of schemes available and who would be able to explain the plus and minus points of each in order for you to make an informed decision.

J Johnson Associates Independent Financial Advisers / Mortgage Brokers
(F.S.A. & M.C.C.B. registered) and Dent Raven Marsdens Solicitors together with P.M.Brown & Company Chartered Accountants have teamed up to provide specialist advice on the subject. Of course you can use your own legal advisers or get the information we provide to you checked out.

We only advise on S.H.I.P. ( Safe Home Income Plans ) registered products and this provides certain guarantees which we believe to be essential.

Free no obligation information or consultations can be arranged by telephoning 0800 000 000

Alternatively you can E-Mail to to request details of what options are available to you personally.