Blogs

I wanted to share some further information which has been provided by the Government and some banks regarding the Coronavirus Business Interruption Loan Scheme.

The key points are:

• Loans are available from £25,001 to £5m
• Available from 1-6 years
• No interest is Payable for 12 Months
• Capital Repayment Holidays are available for 12 months as well – so some clients will have no payments to make in the first year
• Loans are limited to 25% of the business’ turnover in 2019, or double the annual wage bill

These criteria may vary from one lender to another. However, there may be other forms of finance which might assist some clients, for example working capital loans, invoice discounting, or capital raising against property.

My expertise is not with Commercial Finance, but I do have an Associate who does have vast experience in this field, who I have every confidence in. If you would like to find out more, please email me in the first instance, & I’ll forward your details.

My own personal view, is I very little faith in Govts’ ability to deliver on these proposals, &, frankly, even less confidence in the Banks’ desire & capability to dispense, but anything is worth a go! Already, stories are being reported that Banks are charging 12% Interest even though Base Rate has decreased! Quelle surprise!! When these measures were first announced on TV, I proclaimed to my Wife, Jackie, that this (although welcome) was not a panacea, & would be unlikely to be workable-Only to be roundly & abruptly accused of cynicism & negativity ( mind you, she is a bit of a Boris Groupie!!). Au contraire, was my riposte, it’s just that I’ve heard & seen it all before, & BTW the definition of a cynic is; What a Fool calls an experienced Realist!! That shut her up-for a few seconds anyway!

Below, is a Link to the latest insight (interpretation?!) of Salaried Staff & Furlough Arrangements:

https://www.icaew.com/insights/viewpoints-on-the-news/2020/mar-2020/coronavirus-job-retention-scheme-furlough-guidance

The Announcement re Govts’ Plan for similar directed to the Self Employed is anticipated later today.

I await with bated breath, in the expectation that Pigs’ Ear will be an appropriate description. It’s not that I doubt Govts’ best intentions, it’s just that decades of bitter experience dictate that they over- simplify the complicated, & over-complicate the simple!!

IT IS MY INTENTION TO BROADCAST UPDATES TO ALL MY CLIENTS ( & ANYONE ELSE  WHO WOULD LIKE TO RECEIVE) ON A REGULAR BASIS, BUT EMAILING INDIVIDUALLY IS EXTREMELY INTENSIVE – SO COULD I ASK THAT YOU CONTINUE TO ACCESS VIA SOCIAL MEDIA – LINKS BELOW.

IF YOU FIND THIS HELPFUL PLEASE FEEL FREE TO FORWARD TO FRIENDS & COLLEAGUES – IF NOT, PLEASE ADVISE & I WILL REMOVE YOUFROM MT CONTACT LIST

WEBSITE

www.essexequityrelease.co.uk

FACEBOOK

https://m.facebook.com/EquityReleaseAdviceCentre/

TWITTER

www.twitter.com/essexequity

BTW- I really do value your participation, & welcome any responses, Shares, Likes, Forwarding, etc (whatever people do on Social Media!), Google Reviews Click here to review I fully intend to still be here when the Crisis is over (Last Man Standing!), but I’m going to need your help to get there

Regards,

Ron.OneCall

As from today, all Panel Surveyors (instructed by Lenders) have been grounded, no longer able to make Site Visits.

This will have a massive effect on the Real Estate Market as, although SOME Lenders can facilitate SOME “Desk Top” valuations, the reality is that Lending for Mortgages has stopped. for all practical purposes.

If you have a Mortgage Application for Purchase in Pipeline that has yet to reach Valuation Stage, then process will cease immediately, & will need to re-apply when the situation improves.

If you have reached Valuation Stage, then you will already have received your Offer, or your Offer will be produced in due course.

If your Financial Circumstances have changed betwixt Application & Completion, you are obliged to inform Lender (& run the risk of the Offer being withdrawn)

If your Offer is already with your Conveyancor, he will be Raising Enquiries, Raising Searches & liaising with Other Solicitors in the Chain, under the cloud of Govt Restrictions to Working Practices between all those Depts, leading, inevitably, to delay in Process. It is also very likely that the Chain will break due to Individuals’ fear of economic uncertainty, without scope to re-link.

In the event, that the Chain is sound & ready to set Dates for Exchange & Completion, there is some confusion currently as to whether Removal Firms will be allowed to continue to practice.

If you are Re-Mortgaging your home to another Lender, it may be possible that the new Lender can accommodate a “Desk Top” Valuation, but it is a long shot, & I would suspect that those Lenders will choose to close that route anyway.

If you are reaching the end of your Interest Rate Period & your Lender has a Retention Policy (All High St Lenders do) then a Rate Switch can be arranged-You should contact your Broker or your Lender.

I have also att a Guide to the new HMRC Rules

Should you have any queries re the above, or any other financial issue, please do not phone, but do feel free to email me

IT IS MY INTENTION TO BROADCAST UPDATES TO ALL MY CLIENTS ( & ANYONE ELSE  WHO WOULD LIKE TO RECEIVE) ON A REGULAR BASIS, BUT EMAILING INDIVIDUALLY IS EXTREMELY INTENSIVE – SO COULD I ASK THAT YOU CONTINUE TO ACCESS VIA SOCIAL MEDIA – LINKS BELOW.

IF YOU FIND THIS HELPFUL PLEASE FEEL FREE TO FORWARD TO FRIENDS & COLLEAGUES – IF NOT, PLEASE ADVISE & I WILL REMOVE YOUFROM MT CONTACT LIST

WEBSITE

www.essexequityrelease.co.uk

FACEBOOK

https://m.facebook.com/EquityReleaseAdviceCentre/

TWITTER

www.twitter.com/essexequity

Regards

Ron Radway

OneCall-01268 799211

Essex Equity Release become a victim of Scammers last week, unfortunately for the Scammer, Ron knew a bit too much for him!!

That’s not because he was obvious, but the Scam he chose to deploy was about an Unpaid County Court Judgement, & this “Court Official” was giving me “fair warning” that Bailiffs would be arriving with half hour (this was at to collect £3.5K, or Goods to the Value, or, I could pay him £2K now, & he would call them off

Needless to say, I would never owe anybody any money, & if a disputed account would be very happy to go thru the Legal Process to challenge (and Win!!), & of course as an Authorised Debt Counsellor, I’m very aware of how the system of Debt & its’ Collection works.

However, I have to say, he was very, very good at what he does! Well rehearsed, authoritative articulate, friendly, helpful, conferring legitimacy on the demand!!

The “art” of the approach is to keep up the pressure on the Victim, giving no time to take a step back & assimilate the info, giving a choice between a really dreadful outcome (Bailiffs + £3.5K) or something fairly dreadful £2K now), until the Victim just did what they were told in utter confusion.

So good in fact, he would have been a huge success if he got a proper job, instead of being a Scum Bag plaguing, terrifying & thieving from vulnerable people.

Needless to say, he didn’t win this one, & I’ve gleaned lots of info & modus operandi which has been passed on to the Fraud Squad to assist in their very difficult task of closing down these Vermin.

I understand that there are similar Scams re Inland Revenue, VAT, Utilities, amongst many, with the latest being 3 month Holidays for Mortgages, Credit Cards, Loans with Frozen Interest!!

Please understand & take notice that there is not a legitimate Firm, Company, Institute or Organisation in the UK that will request any Personal or Financial Information of any kind over the Telephone – Never, Ever!!

So, if you ever receive such a call, simply KEEP CALM, request his name, his position, the landline number of his organisation (not the Mobile Number he is calling from, that one will be thrown away tomorrow!), the Web Site Address, & Advise him that you will call him back at the earliest opportunity, probably tomorrow- No bona fide Firm will object-Then put the Phone down, & take it off the hook for an hour, he’ll move on to the next one

Treat them with the same contempt they gave you!

A simple guide to the legalities of your financial support

If not automatically redirected to the full article, click here.

How to Run the Bank of Mum and Dad….the Definitive Guide

If not automatically redirected to the full article, click here.

A simple guide to help parents and their offspring discuss financial support.

If not automatically redirected to the full article, click here.

A simple guide to the financial considerations of helping your child onto the property ladder.

If not automatically redirected to the full article, click here.

When trying to find the right equity release plan, the amount of money you can release is often the most important factor. We can talk you through every equity release plan and make sure that you receive all the specifications you desire.

Essex Equity Release work with a number of providers to provide equity release plans suitable for every individual.

How Much Can You Borrow?

The number of people using equity release plans is on the up and they are continuously becoming more and more affordable for each client. Whilst there is not an exact sum of how much you can borrow with each equity plan, homeowners are borrowing, on average, 30.8% of their housing wealth.

This is a massive amount of money for every homeowner and can help you with a wide range of financial situations, as well as funding holidays and getaways in later life. Equity is available to all homeowners over the age of 55 and the later in life you take out equity, the better your deal will usually be. With such a large sum of money available, this is a route you should always consider.

Considering Equity Plans

Additionally, more people than ever are also using equity plans to improve their finances. Since 2017, there has been a rise of over 4,000, increasing from 16,805 up to 21,490 new plans being agreed. This includes 38,912 different households using equity release products, demonstrating a massive increase in the number of people using equity.

It is never too late for you to use equity release plans. Even if you are already financially stable, equity plans can still be beneficial and will ensure you have any finances you need at any point in your life. In total, over £390 million has been released through equity plans within the space of a year.

Rising Equity Release Products

In correlation with the number of homeowners using equity release plans, there has also been a rise in the number of equity products available. with interest rates also dropping to 5.22% from 5.96% on average over the past two years, equity release has become a very viable option.

In 2016, only 58 equity release products were available. As of August 2018, this has more than doubled, with over 139 products now available on the market. With so many products available, this gives every individual the opportunity to find suitable equity release products and gain as much money as possible from equity release.

Assist With All Finances

Finances gained from equity release plans can be used for anything you require. One of the most popular uses is helping family and friends to purchase new homes by using their equity release loan. This is shown as over 1.1 million homes in England were bought with a gift or loan from family or friends.

If you have family members who are looking to purchase a property, using equity release plans can be the perfect option to ensure homes are purchased without delays or issues. If you just want the money to improve your own financial situation, this is never a problem and we can always find the perfect plan for your needs.

Contact Us

Essex Equity Release offer a no negative equity guarantee, ensuring any repayments made will never cost more than the value of your home. If you would like to discuss our equity plans in detail, contact Essex Equity Release today. Call us now on 01268 799211 or fill in our contact form to make an enquiry.

Equity release can be a tricky subject and something many homeowners fail to fully understand. Equity release can be a fantastic option and understanding its benefits is essential. There are many equity options ensuring you can always find the right plan for you.

Essex Equity Release have a huge range of plans available and can always discuss which equity plan would be best for you.

Why Use Equity Release?

Equity release is a fantastic solution for many homeowners and is suitable for more than just unlocking extra cash. As this cash be used for anything, it can help you pay off your current mortgage or prevent you from downsizing your property, as well as making home improvements.

Away from your home, equity release can also be used as money in your retirement or to take several long holidays. There is no limit to what your equity can be used for which is why it gives many homeowners the perfect opportunity if you are struggling with finances or just want extra income.

Equity doesn’t have to be used for yourself either. Whether its financial support for the family or getting a family member through university, you always have free reign.

How Can You Release Equity?

Releasing equity should never be a long or difficult process. When working with Essex Equity Release, we will provide advice every step of the way and make sure your equity plan meets all your requirements. We work with many providers to give you the best possible plans, whilst offering a No Negative Equity Guarantee. This ensures your repayment will never cost more than the remaining value of your home.

We can provide our consultations in whatever way is best for you, including:

• Email
• Home Visit
• Meeting at Local Office
• Phone Call

We want to make this process as easy as possible for our clients, making sure all paperwork is completed quickly and you never struggle to release the right equity plan. Different plans will give you several outcomes and it is important to understand the criteria and outcome of every plan.

You must be at least 55 years old to release equity from your property. If you choose a home reversion plan, you and your partner must both be 65 or over.

Understanding Lifetime Mortgages & Home Reversions

When releasing equity from your property, there are two types of equity you can choose from. These are lifetime mortgages and home reversions. Lifetime mortgages are the most popular choice when releasing equity as this allows you to retain full ownership of the property. However, this does mean taking out another loan against the value of your property, similar to a regular mortgage.

Lifetime mortgages are often more popular as you do not have to repay the loan until you pass away or move into long-term care. This means there are no repayments until this time and therefore you can enjoy the money until your home is sold.

Home reversions offer a different option to homeowners looking to release equity. Instead of taking a loan out against the value of the property, home reversions allow you to sell all or part of your property to a third party. This means you give up part ownership of your property, whilst still being able to live there rent free until you pass away or move into long term care. When selecting this equity plan, you can choose from receiving a lump sum, monthly payments or both.

Whilst home reversions offer a fantastic option, they are not as popular as you have to sell part of your home. This means when you eventually choose to sell all of your home, you or your family members will not receive as much money.

Find Your Equity Plan

Essex Equity Release offer a number of fantastic equity plans and will work with you personally to provide the advice you need. All equity schemes are recommended by the EEARC and sanctioned by the Equity Release Council, ensuring no monthly payments and No Negative Equity Guarantee. Contact our team to organise a consultation and call 01268 799211 or fill in our contact form to make an enquiry.

There are many myths surrounding equity release that need to be addressed. Equity release is a fantastic option for many homeowners, as long as you find the right plan. Understanding what equity is and why it could benefit you will disregard any common myths.

Essex Equity Release offer advice and a range of equity plans to ensure every homeowner receives the best plan. We can discuss every option you can take and what the best path is for you and your home.

Inheriting Debt

Whether this is for you to pay out yourself or leaving a debt for your children and loved ones, it is something nobody wants after releasing equity. However, this is not actually a common occurrence and with our plans, you never inherit debt.

Essex Equity Release have many plans available but regardless of the provider we use, you are assured of a no negative equity guarantee. This means, no matter how much you owe your provider, you never have to pay more than the value of your property. As equity only requires repayment when you and your partner move into long term care or pass away, repayment can always be made with the sales from your home.

This also means children will never inherit debt as the equity will be paid off before this could be passed onto family members and friends.

Switching Homes & Plans

A big worry for many homeowners is that you may not want to live here for the rest of your life or you could end up choosing the wrong equity plan. Whilst we try to give you as much support as possible and find the best plan, mistakes can be made and you don’t want to suffer because of this.

Subject to the criteria of each individual plan, you will be able to both move homes or switch to a different plan. People who have previously released equity may find that newer equity plans offer a better deal, interest rate and are less expensive for a homeowner, meaning switching could be beneficial. If this is important to you, we can make sure a plan is always selected with the option of switching equity plans without a fine.

When finding a new home, there are still several rules you must follow in order to avoid early repayment fines or have your equity plan end early. Many equity plans will allow downsizing protection so that, typically after five years, you can downsize properties without a charge and switch house to a smaller property. Some plans will also allow you to move home without any charge as the new property will match the criteria of your current equity plan.

Retaining Ownership

Another big worry for homeowners is that when releasing equity, you will not retain full ownership of the property. This is, again, down to the criteria of your equity plan. There are two types of equity plans available which are lifetime mortgages and home reversions.

All plans that are lifetime mortgages allow you to retain full ownership of your property. Regardless of what equity scheme you select, you can be assured that lifetime mortgages will give you full ownership. This is because lifetime mortgages are a loan against the value of your property, rather than selling part of your home. Home reversions will also allow you to retain ownership, however, this will be part ownership. Home reversions mean you sell part of your property to a third party and when your equity plan comes to an end, part of the property that is sold will pay off the third party.

Monthly & Long-Term Repayments

Monthly repayments are not ideal for many homeowners and all our plans ensure you have no monthly repayments. Whilst you always have the option of making voluntary, partial repayments to pay off some of the equity, this is never a necessity. Using this method will allow you to pay up to 15% of the amount you’ve borrowed every year and also means there are no early repayment charges.

With the majority of homeowners, releasing equity usually means you will make repayments when the equity plan comes to an end. This will only happen when both you and your partner either pass away or move into long term care. Therefore, your house is vacant and can be sold, allowing you to easily repay the equity you have released without any financial issues.

Contact Us

If you would like to begin the process of releasing equity, contact Essex Equity Release today. We can provide a fast response and organise a consultation over the phone, through email or with a home or office meeting to find the right plan for you. Call us today on 01268 799211 or fill in our contact form to make an enquiry.