asset income plan
DESCRIPTION
A sales brochure for the Asset Income Plan.TRANSCRIPT
assetincomeplan
“Income for homeowners”
“Improved turnover for businesses”
HavenINTERNATIONAL CONSORTIUM LTD
• Savings rates at record lows
• Poor investment returns
• Volatile stock market
• Pension plans not performing
• Salary not keeping up with inflation
• Ever rising costs
• Danger of redundancy
• Can’t afford to retire
• Forced to retire early
• Insufficient retirement income
� 8 interest payments
� 8 debt
� 8 erosion of equity/inheritance
� 8 loss of title to the property
� 8 punitive early redemption clauses
Would you prefer your property to earn rather than cost money:
Are you affected by any of the following?• Business struggling
• VAT man knocking at the door
• Bank withdrawn finance facility
• Cash flow compromised
Are you struggling to find a solution?Do you own your own home or business premises?
Your biggest asset, your home or business premises, could be the answer to your prayers...
The equity in your property, whilst it may have grown over the years, has never actually earned anything.
Traditionally there has always been a cost attached to accessing that wealth. Releasing equity has always been
seen as a “last resort” option with some or all of the associated downsides:
� 3 no debt or interest payments
� 3 no erosion of equity
� 3 no loss of title
� 3 no age requirements
� 3 no income requirements
The Asset Income Plan is the perfect opportunity to satisfy the needs of two disparate parties. You,
the property owner, can earn interest on your equity, paid for by the need for Insurance Companies
to increase their capital reserves, a demand made by the EU directive, “Solvency II”.
The Asset Income Plan has been created to
enable property owners to benefit from a much
needed quarterly income linked to the value of
the property. An income obtained without
borrowing, without paying interest, without
eroding the equity in the property and without
losing title to the property.
An independent financial adviser or mortgage
broker will discuss the suitability of the plan
to make absolutely sure that it meets your
needs. If so they will let you have an illustration
showing the income which the plan will provide
for you based upon the expected value of the
property. Assuming that you wish to proceed,
perhaps after further discussions with your
family and/or legal adviser, your property will
be valued and the quarterly income confirmed.
Your income will be paid to you by ‘A’ rated
or higher, nationally recognised Insurance
Companies to whom packages of equity in
many properties will be assigned. This helps
the Insurance Companies to comply with the
“Solvency II” EU directive which requires them
to increase their capital reserves in order to
continue to write their current levels and any
future insurance business. The contract term
will be for 10 years at which point the charge
will be automatically released with no debt or
interest payments due and retaining full title
to your property. For residential property
owners the contract can be terminated early by
giving 3 months notice, (during which time no
further payments will be received) for death,
divorce, bankruptcy, move to a care home or
moving home. For commercial property the
notice period is 6 months for death, divorce,
insolvency or administration. The contract may
also be renewed for a 2nd term according to
market conditions at the time.
How can the Insurance Companies afford to
pay you in return for the equity charge?
Well, under solvency rules, Insurance
Companies must have increased levels of
capital reserves to support the insurance
business that they write, not an easy task in
today’s economic climate.
Adding packages of property charges to
their balance sheets is a cost effective means
for them to write greater levels of business,
with the associated increase in profit more
than adequate to cover the quarterly
payments to you, the property owner. In
short, everyone wins, the Insurer can write
more profitable business and the property
owner earns an income in a way which has
never been possible in the past.
How does it work?
Graham & Janet Parsons:The Parsons paid off the mortgage on their 4 bedroom detached home on the south coast just over
2 years ago. In their late fifties, Graham is considering the possibility of semi-retirement which would
give them more opportunity to pursue their love of sailing, particularly in the summer months. However,
the reduced income could mean selling their current home and downsizing, which would affect the size
of inheritance for their children. Their IFA recommended the Asset Income Plan which would provide an
income of £13,750 every year for 10 years, more than enough to cover Graham’s reduced salary which
means they can stay in their current home.
Stuart AshtonStuart, 43, bought a small hotel 8 years ago with an inheritance of £600,000. He saw excellent growth
during the first 4 years but has suffered a fall in business since the infamous credit crunch hit. He loves
the business, is a very good host and does not want to sell the hotel. He feels his only other choice would
be to take a commercial loan, secured against the hotel, until business improves again, which he expects
to take another 2 or 3 years. He was lucky enough to broach the subject with his broker who suggested
the Asset Income Plan as an alternative. He is sure that the additional £15,000 per annum which the plan
will provide will help him through the hard times and increase his profit for the following 7 or 8 years.
Jim OvertonJim is in his late seventies and is struggling to make ends meet as price rises continue to outstrip his small
pension increases. He owns his delightful cottage, worth about £160,000 and his two sons and daughter
want him to consider equity release as a way to enjoy his life more from the income it would provide. But
Jim is worried that this would severely diminish the inheritance that he would love to leave to his children.
By taking the Asset Income Plan that his financial adviser showed him, Jim can now comfortably live without
fear of debt or interest payments, secure in the knowledge that his family will still benefit from the full value
of his home.
*These case studies are fictitious, but should help to illustrate how the Asset Income Plan can change people’s lives for the better.
Case Studies *
Am I eligible for the Asset Income Plan?Unlike most mortgage and equity release schemes
there are no criteria which might exclude applicants
other than owning a mortgage free property. There
are no age restrictions and no income or
employment restrictions.
Are there any capital or interest payments due?Traditional equity release, lifetime mortgage or
reversion plans require interest payments, build
up a debt that needs repaying or erode the equity
in your property. With the Asset Income Plan
there are NO payments due, either now or in the
future and NO loss of equity in your property.
Do I lose the title on my property?Absolutely not. A charge is taken on your
property and assigned to the Insurance
Company, but the title remains yours and the
charge is merely released at the end of the
term with nothing to pay and no loss of equity.
How much will this cost me?For residential property owners there are no
arrangement fees for setting up the Asset
Income Plan, although a standard valuation
fee is payable. For commercial property owners
the valuation fee would depend upon the
complexity of the valuation. Should you decide
to take additional legal advice this would be at
your own expense. Your financial adviser/
mortgage adviser may charge you a fee for
their advice.
How much income can I expect?The Asset Income Plan pays 5% of the value of
the charge taken (up to 50% of the value of the
property) every year for 10 years. A property
worth £200,000 would have a charge taken
of £100,000 which would earn £5,000 every
year, a total of £50,000.
What are the risks?The charge on your property will be assigned
to financially strong, nationally recognised
Insurance Companies. The chance of such
strong entities either defaulting on their
payments or going into administration are
very low, although not impossible. However,
should the Insurance Company become
insolvent, the charge on your property will
be protected by an insurance policy which
will pay the value of the charge which can
then be released by the administrator. The
only loss, therefore, would be of the
quarterly payments due during the
remainder of the 10 year term.
Any other considerations?It is important to understand that the
income produced is potentially taxable, paid
gross. The entitlement to certain State
Benefits could be affected by this plan so
you should check with your financial adviser.
This plan will only provide an income; if you
require a lump sum then there are other
options that may be more suitable.
Questions & Answers:
Code of PracticeAsset Income Plan Ltd. have appointed Haven International Consortium Ltd. to bring the Asset
Income Plan to the public domain. Together we aim to treat customers fairly, honestly and with
the utmost integrity. We aim to be transparent in all our dealings with customers, with both our
marketing material and our verbal and electronic communications; before, during and after the
acceptance of the Asset Income Plan.
The Asset Income Plan is governed by the laws of England and Wales. The Courts of England and
Wales shall be the forum for the resolution of any disputes relating to the plan. All plans shall be
subject to a 14 day “cooling off” period from the date of offer, during which the customer may
change their mind without charge or penalty.
The Asset Income Plan is a Non-Regulated Product, which means that you will not be covered by
the Financial Services Compensation Scheme. Advice on the suitability of the Asset Income Plan
should be taken from your qualified Independent Financial Adviser/Mortgage Adviser.
HavenINTERNATIONAL CONSORTIUM LTD
Haven International Consortium Ltd.2 Old Market PlaceAltrinchamCheshireWA14 4NP
Tel: 0161 928 9961 Email: [email protected]: www.havenic.com
V1 – 10.03.2011Copyright 2011 © Asset Income Plan