Following on from last month's review of Aviva's legal processes this month I shall be looking at the legal processes for Stonehaven and drawing your attention to anything that I think you may want to prepare your clients for.
Occupiers Forms - if there are any adult occupiers living in the property then they will have to sign an Occupiers Form and have this legally witnessed (we cannot witness it). The borrowers/occupier will need to budget for anything from £50+VAT to £150+VAT.
If there are joint borrowers but the monthly payments come from a sole named account, I will have to mention to the clients that they should ensure, in the event of the named borrower dying first, that the direct debit is transferred. (Otherwise they run the risk of the mortgage converting to a roll-up LTM.) A sensible requirement to point out, and clients do appreciate being reminded of this.
The Stonehaven paperwork is very "borrower friendly". The borrowers only have to sign a Mortgage Deed, Insurance promise and the ERC certificate.
We do have to ask the clients to answer a number of simple questions (such as; have any claims been made on your insurance, are you resident in England, etc) but these do not normally cause any issues.
As a general comment the legal processes for Stonehaven are straightforward and Eversheds process them very well and efficiently.
On the whole the Stonehaven LTM cases proceed without a hitch, the processes have been well designed and thought out.
08.05 - KRS figures show equity release sales are virtually flat - first quarter sales for 2013 were 4,567 as compared to 4,508 for the same period last year. KRS reported that the average loan size increased 27% over the last year from £44,519 to £52,710. The average amount released for 2012 was £52,268 up 7% on 2011.
08.05 - ERC research shows that 32% of those surveyed see their home as a potential financial asset in case they ever need to release equity to cope with the cost of retirement.
14.05 - Bridgewater announce a round table workshop for equity release advisers. The Panel are Gareth Morgan (Ferret information systems), Chris Prior, and myself at Ashfords London office on 13th June.
15.05 - ERSA poll shows that the percentage of the adults surveyed who would consider equity release has increased by 23% from 54% to 77%.
15.05 - PMS add Partnership to their lender panel.
20.05 - M2L cuts its interest rate to 5.50% on its Protected Equity Plan.
22.05 - The Office for National Statistics has found that 980,000 over 65s are still working to supplement their retirement income.