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Mike Oliver Associates

Jun 302017
 

 

Burgess Hill Business Parks Association Awards Charity Champion Winner 

Mike Oliver won the ‘Charity Champion’ award at the event, which was hosted by the Burgess Hill Business Parks Association (BHBPA) and highlighted outstanding business accomplishments in the local area.

Judges Gordon Reay, Grant Ashley, and Mayor of Burgess Hill Jacqui Landriani chose Mike for the award due to his dedicated support of organisations such as the Rotary Club, Dementia Action Alliance, Alzheimer’s Society, and Chailey Heritage.

Mike was unable to attend the event as he was taking part in the Brighton2Paris bike ride from Friday 4 to Monday 8 May, for which he was also a sponsor.

“I am truly humbled to receive this distinction,” said Mike. “I was disappointed I couldn’t be there but the Bike Ride was a fantastic experience and a great chance to raise funds for some worthy causes. Thanks to the BHBPA and the judges for this recognition – it was a lovely surprise.”

The BHBiz Awards took place at the Brighton Amex Community Stadium on Friday 5 May.

May 192017
 

The Bank of mum and dad is often relied upon by first-time buyers to give them a leg up onto the property ladder, but increasingly grandparents are helping out financially too.

Nearly one in 10 (8%) of first-time buyers now turn to their grandma and grandpa for financial support, recent research by Santander Mortgages found, up from 2% just five years ago. Separate research from insurer Legal & General found that around 22,000 grandparents last year provided financial support for first-time buyer grandchildren.

It’s hardly surprising that many first-time buyers need help from the bank of gran and grandad, given that soaring property prices in recent years have pushed up the amount needed as a deposit. Most mortgages lenders require buyers to put down at least 5% of the property value, but even this often isn’t enough to ensure that their property purchase goes through.

According to a survey by Nottingham Building Society, 35% of would-be first-time buyers saw their property deals collapse in the past year because they didn’t have a big enough deposit.

Property website Rightmove’s latest property index shows that the average price of a first-time property – one with up to two bedrooms – is at a record high of £194,881. That means a 5% would amount to £9,744, while a 10% deposit would be £19,488.

Grandparents who are keen to help their grandchildren buy their first home often find most of their wealth is tied up in their own property.

One option that might be worth considering is Equity Release, whereby you unlock wealth from your home, without the upheaval of having to move. Drawdown lifetime mortgage schemes are usually the most popular type of equity release plan, as they enable you to release equity as and when you need. Interest rolls up over time and is only repaid along with the amount released either when you and your partner move pass away or go into long-term care.

Latest figures from equity release specialists Responsible Equity Release found that 4% of those who took out equity release plans last year gave the money as early inheritance. The most popular reason for older people to unlock wealth from their homes was to clear their own mortgages (36%), while 28% wanted the funds as a cash cushion in retirement.
Nigel Waterson, chairman of the Equity Release Council, the trade body for the equity release sector, said:

“Older homeowners are increasingly realising that there are a number of potential uses for their housing wealth beyond supplementing their retirement income, including re-investing in their homes and helping younger family members by providing a living inheritance.”

However, equity release should never be undertaken lightly, or without seeking professional financial advice, as it can affect your entitlement to state benefits and will also reduce the value of your estate.

It’s also important to understand that equity release rates are higher than standard mortgage rates, although they have fallen in recent years. According to Moneyfacts.co.uk, the average fixed rate for equity release deals has fallen to a record low of 5.63%. There are also far more options to choose from, with the number of fixed equity release products having increased from 52 options in 2015 to 82 today, the highest recorded figure in eight years.

Steve Wilkie, managing director at Responsible Equity Release, said:

“The equity release industry has also been far more receptive to innovation, recognising the importance of meeting the changing demands of customers who are more aware of equity release but want more choice and flexibility.

“The greater variety of products, such as interest-only lifetime mortgages and flexible repayment, has attracted a whole new market to the benefits of equity release.”

May 092017
 

Mike Oliver is one of the sponsors of the Brighton2Paris Charity Bike Ride 2017 and member of the cycling team who finished  to a wonderful welcome at the Brighton Fringe.
PLEASE SPONSOR US! https://www.justgiving.com/crowdfunding/BAHPC2017
Brighton & Hove Property Consortium – in aid of The Mayor’s Charities and the ABF Soldiers Charity.

Mar 282017
 

‘Solve it in ‘17’ poster entered into Design Week Awards 2017

Our local graphic designer is so good we’ve entered one of our posters for an award!

The concept for the promotional design came from Mike Oliver Associates but the artwork and concept translation for this poster was done by Paul Saunders of Spot Creative Design. The design is a key part of a 2017 campaign for Mike Oliver Associates (MOA) an innovative firm of independent financial advisers which is a one-stop-shop for financial advice both private and commercial.

 

Mar 162017
 

Mike Oliver Associates are the main sponsors for Haywards Heath Lions Club SWIMARATHON  held at Dolphin Leisure Centre on Good Friday 14th April. To join your team to the event go to http://www.hhlionsswim.co.uk/ in support Chailey Heritage Foundation in their new project – the D.R.E.A.M. Centre. We are very grateful for all of your donations.  Thank you.

Feb 022017
 

Do you know……

From 6 April 2017, you’ll get a larger IHT threshold if you give away your home to your children.  A new residence allowance (the residence nil rate band ‘RNRB’) was announced in the 2016 Budget.  the allowance is set to increase by £25,000 each year, from £100,000 in April 2017 to £175,000 per person by 2020/21.  This in addition to the main nil-rate band.

Please contact us for information as to how you can make the most of your estate planning options.

Jan 112017
 

Getting married

Getting married or entering into a civil partnership is a very exciting time, but it’s also a time to start thinking about your finances and how things will change once you are married.

Whatever your situation was as a single person, when you get married you take on new responsibilities and so it’s a good idea to make sure both of you have a strong focus on your personal finances.

There are often big decisions to be made such as choosing a mortgage and deciding who’ll pay the bills (if you’re not already living together).  There are simple things that need to be done too, like changing your name on bank accounts and life assurance policies.  With the help of an independent financial adviser (IFA), you can make a structured plan that will help you cope with your finances as a couple.

We can give you expert guidance on a whole range of issues, from securing your assets outside the marriage, to helping with pension planning, or finding ways to spread to cost of your wedding.  In every situation, getting a little professional advice before you walk down the aisle is a good idea.

Questions you might like to ask us…

  • What’s the best way to organise our savings for tax-efficiency?
  • What are the implications of having our house in joint names?
  • Can we set up life assurance policies on each other?
  • How could we benefit from making pension plans together?
Dec 062016
 

About The Equity Release Council:

The Equity Release Council is the industry body for the equity release sector, which represents over 400 members including providers, qualified financial advisers, solicitors, surveyors and other industry professionals.

It works to ensure a safe equity release market for consumers, by operating rigorous Standards for the provision of advice and products which guarantee security of tenure and financial protections. 2016 marks the 25th anniversary since the first industry Standards were created for equity release in 1991. Since then, over 350,000 consumers have taken out an equity release plan from Council members, drawing on almost £17bn of housing wealth.

The Council also works with consumers, industry and policy makers to improve awareness and understanding of equity release and the potential for housing wealth to help solve many of the financial challenges facing people over the age of 55 across the UK.

Dec 012016
 

An article form this month’s Money Marketing magazine

Paul Lewis: Use housing gold mine to pay for long-term care

Paul Lewis

Changes in the way long-term care is paid for was the dog that did not bark in Chancellor Philip Hammond’s first Autumn Statement. It failed to get even a mention, despite many telling us there is a crisis in long-term care for older people.

There have been calls for tax subsidies for those who save up for their own care or take out insurance to pay for it. In other words, those who could afford to pay for it would get a subsidy from other taxpayers to do so. There is a much better solution.

Let me tell you about my neighbour Marjorie. When I moved into my house in 2001, Marjorie was already well into her 80s. She had one hip operation, then another, but still could not get about and her condition deteriorated.

She had been living in the house since the 1940s, inheriting it when her father died. She had no children and when she could no longer live alone she used the money from the house to buy herself care in a home she wanted to go into in a part of the country near her friends.

It would have been completely wrong if the £485,000 value of that house had been protected and hard-working millennials, who spend half the week keeping their landlord and the other half keeping themselves, had their taxes used to pay for her care.

But if Marjorie had been married that is exactly what would have happened. While her husband lived in the house, its value would have been protected and the local council would have paid for almost all the cost of her care. If this imaginary husband had died a few months after she passed away the whole value of the home would have been intact, to be left to whatever heirs he had.

The care home fee rules ignore the value of the resident’s home as long as their spouse or partner – or any elderly relative aged 60 or more – lives in it. But why?

Society has more right than the heirs sitting thinking: ‘Other taxpayers should pay for mum to go into care for two or three years, otherwise I won’t get the house’

The Miras mirage

The losers are not the people who need the care; they will be dead when it is all sorted out. It is the middle-aged children who complain. They expect to inherit the whole value of the house. Of course, many parents want to leave that legacy to their children. “It’s my home,” they say. “I worked hard for it. Why shouldn’t I pass it on as I choose?”

They may have worked hard to pay the mortgage but they rarely pay anything like its full value.

I bought my first house in 1975 for £9,350 (that was more than 3.5 times my earnings). I did my job and worked some evenings to earn more. My wife worked too.

We paid the mortgage. We kept our three children. And eventually the mortgage was paid off. Today that house is worth £325,000. We paid perhaps £20,000 for it, including interest. Where did the rest of the value come from?

Some came from other taxpayers. Between 1969 and 2000 mortgage interest relief at source meant I did not pay tax on the interest I was paying on my mortgage. That saved me 35 per cent off the bill in the early days.

If I had paid higher rate tax (a dream of mine then) I would have got even more Miras: anything from 40 per cent to 83 per cent off the interest cost. So society – all those other taxpayers, many of whom could not afford to buy their own home – helped pay for mine. Thank you very much.

But that is just the start. Allowing for RPI inflation, the price of £9,350 in 1975 is equivalent to around £75,000 now. Where did the other £250,000 of its current value come from?

It was created by the way society works. By a shortage of housing. By that Miras subsidy. By a growing population. By those who buy more than one home. So there is an argument that society has a right to its share of that windfall gain.

They have more right than the heirs sitting there thinking: “Other taxpayers should pay for mum to go into care for two or three years, otherwise I won’t get the house.”

That is why I say the value of a home should be taken into account when the local council considers the means test to pay for care. That happens now if there is no one left living there.

It should also happen even if there is a spouse or elderly relative in it. Of course, they could stay there for their lifetime, but when they died the cost of their spouse’s care would be taken from the estate and paid to the local council.

Putting the gold to work

The average cost of a nursing home is around £39,000 a year and the average life in care is two-and-a- half years. This means the total cost averages around £100,000. The average price of a home in the UK is £218,000.

So there is enough value in the average home to fund the care for two people at the end of their life. If it does run out, then the council would pay the cost, as now.

When the problem of paying for care was looked at under the coalition government, the Social Care Funding Commission chairman Lord Warner said, in the fashionable phrase of the time, that there was no silver bullet to solve it.

But there is a pile of gold – perhaps a trillion pounds’ worth – sitting in the unused assets of homes owned by the elderly. That is the same amount as the total gold reserves of the top 40 gold-owning countries in the world. It is serious wealth and it should be put to work.

Paul Lewis is a freelance journalist and presenter of BBC Radio 4’s ‘Money Box’ programmeYou can follow him on Twitter @paullewismoney

Aug 122016
 

What about getting a mortgage certificate?

The very first thing you must do before even looking at a property to buy, you must obtain a mortgage certificate, otherwise known as a mortgage promise or an agreement in principle. This is a document from a lender showing how much they will be willing to pay you. These statements only last for a short period of time, usually 3 months, so make you know how long yours lasts for.

It has many advantages being that it demonstrates to the seller that you are a serious and determined buyer, and that you have enough money behind you to purchase the property. It will also speed up the mortgage process later on when you make a formal application because it will already have some of your information on record. You must remember that a mortgage certificate is not a guarantee that the lender will actually give you the money for the property you want to buy. It depends on details such exact details of the property, the outcome of credit checks and the correctness of information you supplied about yourself.

In order to get a mortgage certificate you will need to complete a form, giving details of your income and financial commitments, and your employment records. At this stage it is likely the lender will run credit checks on you, and might even ask your employer for references. The lender will then use this information to calculate how much they are willing to lend you. If you intend to keep your options open, there is no reason why you can’t obtain a mortgage certificate from more than one lender. However, if you feel problems with a lender agreeing to the amount you want to borrow, then there is no point in doing this, also, if each lender you go to carries out a credit check, it could harm your credit rating.