Later Life

March 9 2017

Equity Release

What is it and why could it be of value to us? We find out more from Nigel Waterson who is the Chairman of the Equity Release Council.

1. What are the two types of equity release and how do they work?

Equity Release provides home-owners over the age of 55 with the facility to release money from their home, which they live in as their main residence without necessarily having to make any regular repayments. There are two main types of equity release: Lifetime Mortgages and Home Reversion plans. Both types of plan are regulated by the Financial Conduct Authority (FCA). By using an equity release product, a home owner can draw a lump sum or regular smaller sums from the value of their home, while continuing to remain living in it. Equity release customers benefit from three levels of protection: a structured financial advice process, face-to-face legal advice and product safeguards.

Lifetime Mortgage

A Lifetime Mortgage is a type of mortgage where you can choose to extract your funds in a single lump sum or in smaller amounts over time up to the maximum limit agreed with the plan provider. You can also elect to retain some of the value of your property as an inheritance for your family, meaning that you can benefit from releasing equity while ensuring you have something to pass on to your children.

You retain full ownership of your home and interest on the loan is usually rolled up (compounded). The loan and the rolled up interest is repaid by your estate when you either die or move to permanent residential care. If you are part of a couple, the repayment is not made until the last remaining person living in the home either dies or moves into long term care. That means that both you and your partner are free to live in your home for the rest of your lives.

However, with some plans you can make monthly interest repayments in part, or in full. This arrangement would enable you to maintain the debt to the initial capital before interest. If you choose to make interest repayments, you still have the option to move to a roll up arrangement at a later date if you wish, but always discuss details with your plan provider. How much can be released is dependent on your age and the value of your property. Some providers may offer larger sums to those with certain past or present medical conditions, or even ‘lifestyle factors’ such as a smoking habit.

Home Reversion Plan

A Home Reversion Plan also allows you to access all or part of the value of your property while retaining the right to remain in it. With Home Reversion, the provider will purchase all or a part percentage of your house. Again, depending on your age and medical conditions, you may be able to access more funds. You will be provided with a tax free cash lump sum (or regular payments) and a lifetime lease, guaranteeing you the right to stay in your property rent-free for the rest of your life. There is no day to day interference and no restrictions in treating the house exactly as before; as a private home to live in freely.

The percentage you retain in your property will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership. With a home reversion plan you know precisely what portion of your property you have parted with and, equally, what has been ring fenced for later use, possibly to leave in a Will.

2. With people living longer this must affect the amount of equity that providers are prepared to release – is there an industry standard scale and how do we know that we are getting the best value for what is the biggest investment most people will ever make?

Equity release is not a solution for everyone, however those customers that choose to take out an equity release loan do get the best value. More specifically, with rising house prices, the typical value of equity released is equivalent to less than a quarter of the average housing wealth of equity release customers. National indices show the average house price growth over 16 years exceeds 260% and has never dropped below 110%. Given the above, typical house price growth can be seen to balance the effects of compounding interest. For instance, total house price growth of 40% over a 16 year period for a typical customer would preserve their remaining equity while below average growth of 68% would ensure it retains its value in line with 2% annual consumer price inflation.

In addition, equity release products sold by members of the Council also have a no negative equity guarantee, meaning that if there is any shortfall between the amount raised from the sale of the property and the amount still owed, the provider cannot seek repayment of that shortfall.

The Council has put these standards in place to protect and safeguard consumers, who may be at a difficult time in their life when looking to take out an equity release policy and who are not used to dealing with such substantial sums of money.

3. Most people will want to know how the amount that they take, either a as lump sum or in regular payments, will affect their tax position, their entitlement to means tested benefits and their ability to move or sell the property. These are all vital and complicated matters, how do your member keep up with the regulations and ensure that advice given is the most appropriate for the individual?

The Council requires equity release transactions to be supported by independent, expert financial advice. Advisers will be either directly authorised by the FCA, or Appointed Representatives of a firm that is; either way they will receive regulatory updates regarding advice issues. More specifically for equity release advisers, the Equity Release Council’s own 13 point ‘checklist for advisers’ requires them to discuss these issues with the client and in particular give consideration to how their position may be affected by releasing equity. Lastly, The Council of course runs regular meetings for members where relevant topics are aired.

4. And finally is there any legislation/policy not currently in force that the Equity Release Council would like to see?

Confirmation from the Pensions Minister that housing wealth will be among the assets considered within the new ‘Guidance Guarantee’ has certainly been another significant milestone for potential equity release customers. More specifically, it is a real boost for the 320,000 people who retire each year: many of whom are homeowners and will benefit from thinking at an early stage how their housing wealth could bring them financial security in retirement. It is vital that the guidance guarantee conversations make people aware of each and every source of wealth they can call on in retirement so no-one is left to struggle needlessly. For many, unlocking their property wealth may be the most viable and appropriate course of action. So, the introduction of this possibility through the guidance guarantee is a step in the right direction to ensure consumers’ final decision is suited to their individual circumstances.

In terms of departmental ownership, this is definitely on the wish list as currently a number of government departments – HM Treasury, the Department for Work and Pensions, the Department for Communities and Local Government and the Department of Health – are responsible for policy areas which impact on equity release. A government department championing equity release would provide the opportunity to ensure that those implementing policy changes have considered the impact on equity release, helping to avoid unforeseen consequences for the industry, government and first and foremost for the consumers. It would also allow the sharing of insight as to where equity release could be used to help fulfil policy aims such as increasing retirement income or paying for social care.

November 8 2016

Alzheimer and Dementia Awareness

An estimated 850,000 people are thought to be living with dementia in the UK today and this figure is set to rise to one million by 2021. But the condition not only affects the person who lives with it – there are 700,000 people caring for those with dementia too.

A diagnosis of dementia can be very difficult, but many people also tell us they find it a relief and it’s allows them to plan for the future. At this time, it’s so important for loved ones to come together as they will be key in providing practical and emotional support. If you are caring for someone with dementia it’s essential to help them remain as fit and healthy as possible because the better they feel, the more you can enjoy life together.

Everyone has a rich life tapestry; personality and experience will play a huge part in the way a person’s condition progresses and how they react in certain situations. Family and friends will be experts in the person’s unique qualities, interests and needs and this will help shape the person’s care.

Practical things like getting dressed, going to the toilet and eating and drinking will become more difficult. Some people will also experience difficulties communicating. When a person with dementia finds that their abilities are declining, they often feel vulnerable and in need of reassurance and support. It’s essential to listen to the person and adjust their care to meet their needs and help maintain their independence.

As dementia progresses, people will need to receive more one-to-one care and support services. Some people with dementia will be able to remain at home, with a carer, whether that is someone who is paid to come in, or a family or friend, while others will move into full-time residential or nursing care. It is a good idea to plan early and keep the person with dementia involved as much as possible – carefully consider all your options and make arrangements as soon as more help is needed.

A move to a care home can be an emotionally difficult time, but the consistency and quality of care provided can often be what is required. There are also social benefits of living in a care home and a good home will see families as an invaluable asset to share what the person with dementia’s preferences and habits are and what changes may be needed to ensure a happy life in their new home.

When you’re caring for someone with dementia, it can be all too easy to ignore your own needs and forget that you matter too. It’s much easier to cope if you look after your own health and wellbeing, and there is lots of support available.

Visit their website here or call the National Dementia Helpline on 0300 222 1122 for help on how to care for someone with dementia or just talk to someone who understands. You can also visit the online forum Talking Point to get help and advice from people with similar experiences.

October 4 2016

Win Family Break for 4 at China Fleet Country Club

Win a Family Break for 4 at China Fleet Country Club, Cornwall

Set in 180 acres of exquisite countrywide, on the cusp of Devon and Cornwall China Fleet is one of the South West’s leading country clubs. Just 15 minutes from Plymouth’s city centre, sitting on the stunning Tamar estuary, it provides the perfect opportunity for a break away from suburban life.

A family of two adults and two children can win a stay in China Fleet’s stunning apartments. Bright and airy, these apartments provide each guest with a refreshing and surprising hotel or self-catering experience. The rooms have all the convenience and flexibility of a holiday home, but with amazing facilities on the doorstep. The stay includes breakfast and dinner each night, so all you have to worry about is relaxing and enjoying quality family time.

Included in your stay is unlimited use of the indoor swimming pool and Aqua Spa. While you are there, why not treat yourself to a spa treatment or a game of golf on the 18 hole golf course, a great way to unwind, helping to make your stay a truly memorable one. Barn Spa is set in the picturesque grounds of China Fleet in Saltash, Cornwall, near Plymouth, Devon within one of the most beautiful original stone buildings.

China Fleet Country Club, North Pill, Saltash, Cornwall PL12 6LJ – located just over the Tamar bridge from Plymouth to Saltash. Tel: 01752 848668

www.china-fleet.co.uk

HOW TO ENTER

To be in with a chance of winning, all you have to do is answer this question –

What is the name of the well-known pie filled with pilchards which originates from Mousehole in Cornwall?

To enter by email: Email your name, contact details and answer here with the subject China Fleet Competition.

To enter by post, please send your name, contact details and answer to Minerva Publications, County Gate, County Way, Trowbridge, BA14 7FJ.

Competition closes 12noon, 30th November 2016. Entries made after this time will not be counted. Prize not exchangeable. We never share your details with third parties.

About China Fleet Country Club

China Fleet Country Club, North Pill, Saltash, Cornwall PL12 6LJ – located just over the Tamar bridge from Plymouth to Saltash. Tel: 01752 848668

To find out more, please click here.

September 25 2015

Fit After Fifty

Peter Thomson ponders the difficulties of getting older, and how the mind can certainly win out over the matter.

The other night I watched a TV programme fronted by a medical man who arranged to have a variety of medical tests to ascertain his general level of fitness and well-being. I would like to think, and his general appearance would suggest, that he did not live a life beset by the lifestyle excesses and deficiencies that some (or do I mean many) of us experience.

Unfortunately the presenter received an early setback when a scan discovered a build-up of plaque near his heart. The doctor’s conclusion was that this situation was a concern as the eventual outcome could lead to a terminal heart attack and that the ‘patient’ should go onto a statins for the rest of his life. A confirmatory second opinion left the poor man at a very low psychological ebb as he was confronted with his own mortality. A third consultation gave him much better news and a good deal more hope as it suggested that he could get on with his life without further treatment. This set the context for the programme as to whether it was better to have tests which seemed to divide medical opinion, often leaving the patient emotionally overcome and possibly facing medical treatments. It even prevented the presenter from not looking at his genomically produced liability of suffering from dementia in case the truth was too shocking.

On a slightly lighter note, so I don’t send you scuttling to the fridge for a large glass of wine, I have a few thoughts. Irrespective of what ailments you may or may not have, and you should consult your GP before embarking on any lifestyle changes, a positive state of mind can be a very positive weapon in your armoury against ageing. Just deciding to get a grip on you life is a vital first step. Working on the principal of doing more of the things that are good for you and less of the things that are bad you can see changes very quickly.

Take exercise, quite literally, get down to your local gym. There will be experts on hand to guide you through an appropriate fitness program. Don’t worry if you are one of the least fit people there, it is a true statement that most people are only concerned with themselves and their own programme. After a few weeks of getting our body moving and stretching, you will soon see improvements. Even if you have not regained your youthful figure those stairs will seem easier to climb and you will be feeling justifiably proud of yourself.

If unfortunately you have lost some of your mobility there are a number of excellent aids to help you get out and about. A trip to your local mobility centre will introduce you to an array of products which with expert guidance will have you chasing new horizons. Being properly equipped can open so many doors, and you may be surprised to find that your gym caters for such things with specialist equipment.

It seems to be that entering your fifties offers a significant enough milestone that general well-being is brought to the forefront of your mind. We can all make excuses for missing out on exercise, but with a few simple changes, healthy options can be easily swapped into a daily routine in place of time in front of the box. As we age, the need to strengthen and tone our muscles becomes more important, as this is what will keeps one supple and mobile. Having strong muscles also means that should a fall happen, recovery is likely to be much faster. I’m not suggesting that you need to become an expert weightlifter, but adding in some conditioning exercises can make all the difference.

Exercising isn’t just about losing fat and increasing tone. The benefits of cardio vascular exercise are more far reaching. Exercise improves the health of the heart and blood vessels, which can reduce the risk of high blood pressure and heart disease. Exercise can also improve cognition, recent studies have shown that exercise may improve memory and slow down mental decline. Finally, it will also help you sleep better and more deeply, and we all know how much a good night’s sleep can lighten our step.

When it comes to your diet there is an abundance of advice on TV or the web to reduce your calorific intake and eat fewer processed foods. If you prefer a more hands on approach and you do not rate yourself as a chef there are a number books filled with simple low calorie recipes. Assuming you have already cut out smoking, a definite ‘no-no’, now deal with those empty calories…the demon drink. You do not necessarily have to give up, as a glass of wine can be an aid to digestion, is enjoyable, and in moderation will not damage your health, but instead you may reduce your consumption to a single glass a night and watch the fat melt away.

If you take everything in to consideration growing older is not a byword for not enjoying yourself. With a little bit of effort and some planning you can realign your life if you think you have let things slip, it is almost never too late to do something positive. Even a gentle stroll in the countryside, though not necessarily physically taxing can do so much to lift your spirits. It is generally accepted that those people with a positive take on life are likely to live longer as result. The mind, body and soul are all connected, so make sure you take time to nurture and strengthen each one in turn.

What are you waiting for! Get moving!

Words by Peter Thomson

September 23 2015

Dementia Fighting Foods

With daily news that more and more people are likely to develop dementia as our life expectancy increases, many of us are asking the question as to whether there is anything we can do to prevent or delay it.

In recent years studies have suggested, though not as yet proven, that a healthy diet together with regular exercise can assist in preventing, not only dementia, but also other life threatening illnesses such as heart disease and cancer.

It has long been recommended that a ‘Mediterranean’ diet will deliver the food components needed, to not only keep a healthy weight, but also that it will assist in cognitive function, which is essential to have to avoid loss of memory. So here we list a number of foods that will help with brain function in particular:

Fish

These include salmon, dark tuna, herring, mackerel and sardines. These are all packed with omega-3 fish oils, which are thought to assist in reducing dementia risk. All fish offer vitamins B and D, zinc, selenium and iodine so try to include them in your diet on a regular basis.

Green Veg

Yes, we are regularly being told about our five a day, but do not ignore the value of this. In particular getting in the greens. These contain B6 and B12. B12 is a chemical that is needed for brain function. This can be found in meat, offal, mussels, fish, milk, cheese and eggs. B6 is also in meat, including poultry, fish, whole grains and potatoes.

Nuts

Pistachios, nuts and seeds can improve the health of your blood vessels and help reduce blood pressure, which can be a cause of many serious illnesses. Pistachios offer vitamin E, C as well as betacarotene and selenium. You can eat them raw or roasted but do avoid the salted versions.

Avocado

Many people are put off by avocado as they believe it contains too many calories but it offers many vitamins and minerals that are essential to well being. Do try and eat them when they are ripe.

Fruit

In this case we are talking dark berries. These will include blueberries, blackberries, cherries, raspberries and all other dark berries, think red current etc. These supply improvement in the function of the blood vessels, which in turn helps with the function of the brain by protecting against the narrowing of the blood vessels that can lead to vascular dementia.

Citrus Fruits

These include citrus flavonoids that are thought to have neuro-protective properties. These again will help to reduce blood pressure and improve the efficiency of blood vessels. The fruits include oranges, lemons, grapefruit and tangerines.

Mushrooms

These offer vitamin D but they must be sundried. They improve heart health, nerve function and vitamin D deficiency. You can make your own by putting button mushrooms in the sun for about half an hour.

Rapeseed Oil

This oil offers two forms of vitamin E. Studies suggest that people who derive these vitamins from food sources will lower their risk of dementia.

Apples

Recent studies have discovered that drinking apple juice could keep Alzheimer’s away and fight the effects of ageing on the brain. Scientists believe these compounds help prevent and repair oxidation damage that happens during normal cell activity, which it vital to keeping.

August 14 2015

Choosing the Right Care Home

Choosing the right care home for a loved one can be an emotional and stressful decision. From identifying the facilities needed, funding care home placements and understanding different types of homes it can be a bit of a minefield for those not familiar with the jargon. Here, in the third part of our care series, we have compiled a list of the best questions to ask to start you on the right path to finding the right home.

Ultimately, your decision will be based on the ‘feel’ you get from a prospective home and your encounters with the staff that will form such an integral part of your loved one’s life. But, in order to get the most out of the visit, here are some things to bear in mind.

Will it offer the right level of care?

This is probably the most fundamental question. You need to establish what kind of care and support is needed before narrowing your search. There are two main types of care home – residential and nursing: all care homes offer help with personal care if you need it – activities such as washing, dressing, going to the toilet and taking medication. Some, often referred to as ‘nursing homes’, offer nursing care in addition. Some nursing homes will also offer specialist dementia support – these are known as EMI’s, homes for the Elderly Mentally Infirm.

Someone who still has all their mental faculties but just needs physical support should not be moved into a dementia home, as this will cause them to deteriorate. Similarly, a person suffering with dementia would really benefit from specialist care, which helps to reduce the severity and speed of onset of symptoms.

Generally care homes are owned and run by local councils, private companies or voluntary organisations. If you are struggling to find a care home that provides the sort of care you need, ask your local council to help. It has a responsibility to find a suitable home for anyone it has assessed as needing a place in a care home.

What to Ask on a visit?

Once you have established homes in the local area that meet your needs, make enquiries and ask to be sent brochures. From there, you can start to think of some personal questions. Do not be afraid to ask lots – this is a huge decision and you need to be as informed as possible. Here are some ideas of what to ask:

Questions about Accommodation:

• Is the home comfortable, clean and inviting? Is there a fresh, clean smell?

• Can you look at the room your loved one is likely to have?

• Can your loved ones personal possessions and furniture be brought in?

• Do bedrooms have TV and telephone points? If not can calls be made and received in private?

• Are all toilet and washing facilities clean and easily accessible?

• Are pets allowed? Can visitors bring pets into the home?

• Are there gardens in which you can sit?

• Does the home’s insurance policy cover loss or damage to possessions, or should personal cover be arranged?

• Can your loved one choose when to get up in the morning, and when to go to bed?

Questions about Facilities and Food:

• What is the food like? Can you see some menus?

• Are there facilities to make a light snack, or a hot drink?

• What arrangements are made for residents to attend religious services either in the home or outside?

• Is there a minibus or other transport?

• Can visitors come at any time? Can they share meals or stay the night?

• Are trial stays possible?

• What arrangements are made for residents to attend religious services either in the home or outside?

• What is the activity programme like? Can residents still take part in their hobbies?

As mentioned these questions are just a guideline – the general feel of the home is something important and unique to personal tastes. You may have your own essential aspects or deal breakers that you’ve discussed together. Before you visit make a note on facilities or accommodation aspects, such as activities for residents or en suite bathrooms, which you and your loved one are not prepared to budge on and stick to your guns.

Financial Implications:

For proper advice on your care options it is certainly worth visiting an Independent Financial Advisor who is trained in later life care options. They will be able to look at various options after assessing the financial situation of your loved on. When you find a home you both like, make sure you ask them about costs of care. Are fees paid in advance? What extras will have to be paid for? Ask what fees are payable during a hospital stay or holiday? Make sure to ask how often are fees increased, and by how much. These questions, along with a written contract, should help make sure you are fully aware of the financial implications of full time care.

If you still have some questions or need advice about care choices, there are some fantastic resources online. www.ageuk.org.uk has great downloadable advice packs and www.firststopcareadvice.org.uk can answer a lot of your questions.