Client Information Form – Equity Release

New Leaf Distribution Ltd

Client Name
Adviser Name
Company
Date Fact Find Started
Confirm that the right to non-disclosure has been explained / Yes / No
Confirm that SCDD and TOB have been provided to the client / Yes / No
Names of Property Owners / Date of Birth / Marital Status / Joint Tenant or
Tenants in common / In Residence
Y/N
1………………………………….
2…………………………………. / …………………
………………… / ……………….
……………….. / ………………….
…………………. / …………….
…………….
Other Occupants over age of 17
…………………………………..
………………………………….. / Age
………………….
…………………. / Relationship
……………….
……………….. / If client not in residence please explain
……………………………………
……………………………………
Home Address
…………………………………..
…………………………………..
…………………………………..
Post Code ………………. / Date Moved in
………………….
Purchase Price
………………. / Phone Number
Home…………………………………………………..
Mobile ………………………………………………….
Email………………………………………………….
Beneficiaries Name Relationship Age At Meeting?
…………………………………… ……………………………………. ……………….. Yes/No
…………………………………… ……………………………………. ……………….. Yes/No
…………………………………… ……………………………………. ……………….. Yes/No
…………………………………… ……………………………………. ……………….. Yes/No
Applicant 2 – Home Address (if different)
…………………………………………………
…………………………………………………
…………………………………………………
Names/Details of any Dependants?
Notes

Employment & Income

Client 1 Client 2

Currently employed / Yes No / Yes No
Occupation / Job title

Employment status
If “other” give details /
  • Employed
  • Self-employed
Other ______/
  • Employed
  • Self-employed
Other ______
If employed, on what basis? /
  • Permanent
  • Temporary
  • Contract
/
  • Permanent
  • Temporary
  • Contract

Anticipated retirement date / ………/……/…………. / ………/……/………….
Net Employment Income / Monthly
£ / Annual
£ / Monthly
£ / Annual
£
State Pension / £ / £ / £ / £
Private Pension, Company;
……………………………
Private Pension, Company;
…………………………… / £
£ / £
£ / £
£ / £
£
Means Tested Benefits
Pension Credit / £ / £ / £ / £
Savings Credit / £ / £ / £ / £
Council Tax Benefit/Reduction / £ / £ / £ / £
State Benefits
Carers Allowance
Disability Living Allowance
Attendance Allowance
Other Income
Investment Income / £ / £ / £ / £
Income from Rental Properties / £ / £ / £ / £
Total Gross Income / £ / £ / £ / £
Total Joint Gross income / Monthly £ / Annual £

Monthly Outgoings

Please do not leave any blank spaces and detail joint Household outgoings if applicable

Mortgage Payment / £
Gas / £
Council Tax
Does this include any kind or reduction, if so why?
……………………………………………………… / £
Electricity / £
Water rates / £
Phone/Mobile Phone / £
Buildings & Contents Insurance / £
Life assurance/Endowment / £
Car (petrol, insurance and running costs) / £
Loans/credit cards * detailed on page / £
Food / £
Other (detail) / £
Total / £ PCM
Net Monthly Disposable Income / £

Are your incomings or outgoings likely to change in the foreseeable future, if so, please give details Y/N

Client 1 or 2 / Income changes / Outgoing changes / Reason / Date effective
£ / £
£ / £
£ / £
If an Interest Only mortgage is required what is the maximum monthly payment you will be willing to pay?

Your Property

Current Value: £…………...... have you had your property valued in the last 6 months Yes/No

Type of House;- Detached/Semi/terraced/Bungalow/Flat/Age restricted

Is the property ex local council or ex Ministry of Defence? Yes / No

If yes does the council still have any rights over the property and until when ……………..

When did you purchase the property from the council ……………..

Is the property Standard construction Yes / No

If ‘NO’ please detail:

Steel FrameYes / Noyear built ……………

Timber Frame Yes / No

Concrete Construction Yes/No

Adjacent to commercial premisesYes / No

Flat above commercial premisesYes / No

Flat roof - if so what % ………..%

Other – please details ………………………………………………………………………..

Is your property Freehold? Y/N …………………….

If leasehold please advise the remaining term of the lease …………. years

DEBTS

Current Mortgage Arrangment

Amount of current mortgage(s) outstanding £………………….
As at what date: ……/……../……… / Remaining Term
…….. years
Name of current lender …………………….. / Account Number ………………………...
How is this loan to be repaid; / Interest Only
Repayment
Mix : IO £…………Repayment £……….
This is a Lifetime Mortgage
Type of current rate; / Fixed
Discount
Variable
Other
Are there any Redemption Penalties if you
repay the loan at this time? Yes No / Penalty Amount £
When do the redemptions end ……./……./……
Is your mortgage in arrears? Yes No / If so by how many months? ………..

Loan and Credit Card Details

Loan Type / Loan Type
Lender / Lender
Owner / Owner
Outstanding Amount / £ / Outstanding Amount / £
Monthly Payment: / £ / Monthly Payment: / £
Interest Rate / Interest Rate
Start Date / Start Date
End Date / End Date
Early Repayment Charge / £ / Early Repayment Charge / £
Secured or Unsecured / Secured or Unsecured
Months in arrears / Months in arrears
To be Paid with ER / Yes No / To be Paid with ER / Yes No
Loan Type / Loan Type
Lender / Lender
Owner / Owner
Outstanding Amount / £ / Outstanding Amount / £
Monthly Payment: / £ / Monthly Payment: / £
Interest Rate / Interest Rate
Start Date / Start Date
End Date / End Date
Early Repayment Charge / £ / Early Repayment Charge / £
Secured or unsecured / Secured or unsecured
Months in arrears / Months in arrears
To be Paid with ER / Yes No / To be Paid with ER / Yes No

When using Equity release for paying off debts then you need to be aware that you are changing possible unsecured

Adverse Credit

Applicant 1 / Applicant 2
Have you ever had a County Court Judgement?
If so has this been settled? / Y/N
Y/N / Y/N
Y/N
Have you ever been declared bankrupt or an IVA?
If yes has the bankruptcy been discharged?
(if yes when was this discharged?) / Y/N
Y/N
…/…./…… / Y/N
Y/N
…/…./……
Debt Management Agreement / Y/N / Y/N
Have you ever failed to keep up repayment or are you experiencing difficulties on any previous/current mortgage, rental or loan agreement? / Y/N / Y/N

Assets (Other Property, shares, capital investments, antiques, savings accounts etc)

Asset Type / Asset Type
Provider / Provider
Owner/Life Assured / Owner/Life Assured
Current Value / £ / Current Value / £
Monthly income / £ / Monthly income / £
Interest Rate / % / Interest Rate / %
Start Date / ……./……./…… / Start Date / ……./……./……
End Date / ……./……./…… / End Date / ……./……./……
Early encashment penalty / £ / Early encashment penalty / £
Income generated / £
Per year Per month / Income generated / £
Per Year Per month
Asset Type / Asset Type
Provider / Provider
Owner/Life Assured / Owner/Life Assured
Current Value / £ / Current Value / £
Monthly income / £ / Monthly income / £
Interest Rate / % / Interest Rate / %
Start Date / ……./……./…… / Start Date / ……./……./……
End Date / ……./……./…… / End Date / ……./……./……
Early encashment penalty / £ / Early encashment penalty / £
Income generated / £
Per year Per month / Income generated / £
Per Year Per month

Testamentary (Mental) Capacity

A three part test for testamentary capacity, as laid down in Banks v Goodfellow (1870), must be undertaken. This sets out that a client has capacity if:

1)They understand the nature ofentering into a contract and its effects;

2)Theyunderstand the extent to which they are/may be reducing the value of the Estate they will leave their beneficiaries; and

3)They are able to comprehend the nature of any financial transaction and are not affected by any disorder of the mind that influences their will in entering into a financial contract.

To protect the client and ensure they do not lack capacity the following questions must be asked:

  • Are you domiciled in England and Wales?
  • Are you able to read and write?
  • Do you understand the nature and effect of entering into an Equity Release contract?
  • Do you understand may reduce the size of your estate?
  • Can you confirm that you have not been subject to coercion or undue influence?

All answers must be YES. If NO to any question – DO NOT PROCEED

Health Questionnaire

Applicant 1
Do you smoke Y/N
Health ;- Would you describe your health as
Good / Average / Poor
Have you been prescribed any medication even if you haven’t taken it? (do you have a copy of your prescription?)
Medication Reason
……………………… ………………….
……………………… ………………….
……………………… ………………….
FOLLOWING
ONLY TO BE COMPLETED IF CLIENT REQUIRES MAXIMUM LOAN
(Better Terms may be available for impaired lives)
What is your Weight ………………….
What is your height ………………….
If you smoke manufactured cigarettes or rolling tobacco, have you smoked 10 or more cigarettes per day for the last 10 years? Y/N
Have you been diagnosed with high blood pressure, requiring ongoing medication? Y/N
Have you suffered a heart attack requiring hospital admission? Y/N
Do you suffer from diabetes, requiring insulin or tablet treatment? Y/N
Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs)? Y/N
Have you suffered with Angina, requiring ongoing medication? Y/N
Have you been diagnosed with cancer (excl. skin cancer and benign tumours) requiring surgery, chemotherapy or radiotherapy? Y/N
Have you been diagnosed with Parkinsons disease?
Y/N
Have you been diagnosed with Multiple Sclerosis?
Y/N
Have you taken early retirement on grounds of ill health? Y/N / Applicant 2
Do you smoke Y/N
Health ;- Would you describe your health as
Good / Average / Poor
Have you been prescribed any medication even if you haven’t taken it? (do you have a copy of your prescription?)
Medication Reason
……………………… ………………….
……………………… ………………….
……………………… ………………….
FOLLOWING
ONLY TO BE COMPLETED IF CLIENT REQUIRES MAXIMUM LOAN
(Better Terms may be available for impaired lives)
What is your Weight ………………….
What is your height ………………….
If you smoke manufactured cigarettes or rolling tobacco, have you smoked 10 or more cigarettes per day for the last 10 years? Y/N
Have you been diagnosed with high blood pressure, requiring ongoing medication? Y/N
Have you suffered a heart attack requiring hospital admission? Y/N
Do you suffer from diabetes, requiring insulin or tablet treatment? Y/N
Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs)? Y/N
Have you suffered with Angina, requiring ongoing medication? Y/N
Have you been diagnosed with cancer (excl. skin cancer and benign tumours) requiring surgery, chemotherapy or radiotherapy? Y/N
Have you been diagnosed with Parkinsons disease?
Y/N
Have you been diagnosed with Multiple Sclerosis?
Y/N
Have you taken early retirement on grounds of ill health? Y/N

OBJECTIVES

What are the reasons for the raising of capital? Please provide a full breakdown

Reasons / Amount
1
2
3
4
5 / £
Amount required / £
Plus Costs
*Advice Fee / £
*Solicitors Fees / £
*Provider Fees / £
Final Total * add any costs which will be covered by the funds released / £

Drawdown Rationale

Do you require funds on reserve for future draw downs? Y/N

If so please provide details;

Reason / Amount / When required
£

Are funds required to purchase a property? Y/N

Is so please provide property details

Address:
Purchase price / £
Deposit / £
Amount required on Equity Release / £
Date funds required / ……./……./……

Attitude to risk

There are five categories to risk with regards to equity release. Which of the following most reflects your views? This decision should be taken after you have discussed the various arrangements available with your adviser and you fully understand the schemes available to you. PLEASE CIRCLE THE ONE THAT BEST SUITS YOUR OWN PERSONAL VIEWS.

Cautious*– You wish to minimize the risk of eroding the equity within your property and you aim to retain a reasonable amount of this equity for your future use, whilst receiving just enough capital for your immediate needs.

Medium* – You are prepared to accept some risk of eroding the equity within your property for the benefit of having sufficient capital to utilise now, whilst aiming to retain some equity.

High* – You are prepared to accept the risk of faster erosion of the equity within your property for the benefit of having as much capital as possible now.

Speculative*- You are prepared to accept the risk of eroding all of the equity within your property for the benefit of having as much capital as possible now.

Home Reversion* – You are prepared to accept the risk that the reduction in the actual cash value of your estate as a result of your home reversion plan may be significant. This reduction will depend upon factors such as how long the reversion plan lasts and the future changes in house prices. You are prepared to accept the risk of a significant reduction in inheritance that you leave to your heirs and beneficiaries.

Cautious / Medium / High / Speculative / Home Reversion
Client 1
Client 2

Your Views

How do you believe house prices will change in the future?

Decrease / Increase slighty / Increase medium / Increase dramatically / No change

How do you believe interest rates will change in the future?

Rise / Fall / No change / Unsure

Are you concerned about the possibility of interest rate increases in the future? Y/N

How important is it to you that you leave a part or all of your property, to your family? (Please note that it may not be always possible to guarantee that there would be equity remaining for beneficiaries.)

Very Important
(Protected Equity Release) / Preferable / Not important

Lifetime Mortgage –v- Home Reversion

How happy are you to have “debt” in retirement, as some Equity Release products are NOT loans ?

HAPPY WITH “DEBT” DON’T WANT “DEBT”

1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10

Options

We want to be absolutely sure that we only provide you details of whichever plan most closely meets your requirements. To help us select the most appropriate plan, please tell us which features are most important to you by ticking the boxes in the following list. Please ensure you tick one box for each row.

Not Rank

Essential Important Preferable important Top 3

To raise an initial amount and have further funds to draw

down on in the future

To raise the maximum lump sum available

The option to add fees to the loan

Transparent early repayment penalties should you decide to

repay all or part of the loan early

Retaining ownership of your property

Inheritance to Beneficiaries

The ability to change to another plan after a period of

time, i.e from paying interest to roll up of interest.

The lowest rate of interest available

The lowest administration costs available

The Ability to GUARANTEE a % of your estate

To be passed on to your beneficiaries

The ability to pay some, or all of the monthly

Interest to reduce “roll up”

The ability to convert Interest Only to Rolled Up Interest

The ability to make lump sum overpayments

Have you considered other alternatives to Equity Release?

Client 1 or 2 / Source / Amount / Anticipated Date / What do you plan to do with this income?
£
£
£
£
£
Alternatives / Explanation of decision
Have you considered moving to a cheaper property to release cash or sell up completely and rent using the cash proceeds rather than considering taking an Equity Release plan
Cash in existing investments. If you have savings/assets we advise that you consider using these first, prior to taking out an Equity Release Plan, if you do not wish to use your savings for the purposes detailed, please give your reasons here:
Arranging an interest-only mortgage and make repayments of interest only.
Ask your relatives for financial assistance. (For example them paying for an interest only loan
Apply for State benefits.
Seek home improvement grants, if appropriate.
Reduce your monthly expenditure
Take in a lodger to provide an income.
Use pension lump sums when they mature

Other Important Matters

Have you made a Will? / Yes
When was it last updated?
...... /………/……… / No
We strongly advise that you have a will in place, can we recommend a provider for you?
Y/N
Do you have a Funeral plan in Force? / Yes
When did you take this out?
...... /………/………
With which Company?
………………………………. / No
What provision have you made to pay for your funeral?
Would you like us to recommend a solution for you?
Y/N
Do you have a Power Of Attorney in Force? / Yes
Is it:
Power of Attorney
Enduring POA:
Lasting POA
When was this created?
...... /………/……… / No
Would you like to discuss this further?
Y/N
Do you have any arrangements for Long Term Care in Place? / Yes
When did you take this out?
...... /………/………
With which Company? / No
How would you fund the cost of a care home should the need arise?
Would you like us to recommend a solution for you?
Y/N

You will need to appoint Independent Solicitors to act for you if you proceed with a Lifetime Mortgage, please provide the firm name, address and phone number ;-

______

(we can provide a specialist firm of independent Solicitors that are qualified in this area - we strongly suggest the firm you use areexperienced in this field)

Is there anything else that you would like us to know about, that could affect your application?

Notes on Financial Products

Equity Release

Equity release schemes allow you to release tax-free cash from your home to boost your finances in later life. The two main types of equity release schemes are lifetime mortgages and home reversion plans, with drawdown options also available.

All types of Equity Release Council approved equity release schemes allow you to:

  • Remain in your property for life, provided the property remains your main residence.
  • Move your plan to another suitable property without any financial penalty, subject to criteria.
  • Guarantee you will never fall into negative equity. This means you will never owe more than the value of your home and no debt will ever be left to your estate.

Lifetime Mortgages

A lifetime mortgage is a form of equity release scheme where a loan is secured against a property to provide a cash lump sum to spend as you wish, typically with no monthly repayments to meet.

Lifetime mortgages have become a highly popular form of equity release over the past few years, prompting many providers to offer a variation of a lifetime mortgage called a drawdown plan which allows you to release equity as and when you need it, rather than taking a lump sum or regular income.

Another option is to take the money as a regular income, although this is usually a less popular choice.

Usually interest is added to the lifetime mortgage loan throughout your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually paid back when the home is sold, usually when you move into long term care, or when you and your partner die. You can typically release between 18-50% of the value of your home with a lifetime mortgage, depending on your age.

Advantages of a lifetime mortgage

  • A lifetime mortgage gives you the choice of a cash lump sum or income, typically with no monthly repayments to meet.
  • You retain full ownership of your home.
  • Lifetime mortgages are available to younger people (aged 55+).
  • Some lifetime mortgage plans let you guarantee an inheritance for your family.

Disadvantages of a lifetime mortgage

  • The amount you leave as an inheritance will be reduced.
  • The interest applied can grow quickly as it is compounded.
  • You can’t usually raise as much money with a lifetime mortgage as you could with a reversion plan, especially at younger ages.
  • If you repay the lifetime mortgage early, you may have to pay an early repayment charge.

Home Reversion Plans