Equity Release is a significant lifetime commitment and should not be entered into lightly both in terms of advice and the impact it can have on your client.
Good advice can, however, ensure that the effect of equity release can be positive for those people for whom it is suitable.
What you should consider as part of the fact-find A broad ranging fact-find covering a range of areas will give significant insights into a clients needs including:
- future plans.
- ongoing commitments.
- general state of health.
- possibilities of future house moves.
- ongoing income requirements.
- preferences for their estate.
- the effect of ER on their will / estate / IHT situation.
- any impact of needing to enter long term care in the future.
- Eligibility for state benefits and the impact on them caused by equity release.
- Alternatives to equity release (i.e. trading down, Local Authority Grants, use of savings, re-mortgaging etc.).
Other considerationsIt should be strongly recommended that the client's family be involved in any decision making and be invited to attend any part of the advice process. Given the lifetime commitment of the product, both the client and their family, must be given ample time to make a decision.
As it is a SHIP requirement, you should always recommend your clients to appoint an independent solicitor to assist in the legal processes should they proceed to an application.
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