Archive for November, 2011
Wednesday, November 30th, 2011
Research conducted by the Equity Release Solicitors Alliance (ERSA) has found that the percentage of people considering equity release has almost doubled compared with 12 months ago. UKwide research found that the percentage of people qualified for equity release and considering it has increased – from 20% to 38%. This represents an increase of 90% and it fits in with the industry body SHIP (Safe Home Income Plans) reporting third quarter advances of £206.2m – an increase of 12% from the previous quarter.
Solicitors Caesar and Howie are ERSA members and Managing Partner, David Borrowman comments “These figures reflect what we are finding ourselves. Both awareness of these products and demand for them seems to be on the increase and our Senior Issues team is working flat out to get money through for clients. It was not always like this though and I think the current climate for pensioners – where finances just get more and more difficult – is the main driver of this increase. If you are sitting with a lot of equity in your home, it doesn’t seem sensible to be short of money or deny yourself a good lifestyle in retirement, when unlocking some of the capital in the house could help so much. We expect the sales of these products to just keep increasing actually”.
Equity Release products are now regulated by the Financial Services Authority and are generally sold through specialist brokers mostly using specialist solicitors for the legal work involved. Caesar and Howie are the only Scottish members of the Equity Release Solicitors Alliance.
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Thursday, November 24th, 2011
A new body has been launched to try to end what is perceived as the “taboo” in Scottish society which prevents open discussion of death dying and bereavement. The group called “Good Life Good Death Good Grief” is funded by the Scottish Government and its aims are supported by a number of major charities. At the recent public launch of the group in Edinburgh a number of speakers, including poet Liz Lochead, poignantly described their experiences where a death affected their families.
The thinking behind the new initiative is that a lot of harm to society arises from the taboo stopping us discussing death openly. This harm manifests itself in many ways from the inability to communicate comfortably with a friend or work colleague, who has suffered bereavement – to families becoming involved in legal disputes because someone died without making a Will. We even seem as a society to have difficulty communicating with people who are dying. One terminally ill speaker, at the launch, explained how a number of her best friends had simply stopped contacting her once they know she was ill.
The new group believes that a new open approach, to death dying and bereavement, will hopefully help educate people to behave a bit differently and to deal better with all the issues involved round death, whether with friends or families or in the workplace.
Caesar and Howie support the aims of Good Life Good Death Good Grief. Managing Partner David Borrowman commented “I think the group’s aims are laudable and cover many aspects of life. But, just taking the legal issues involved there is no doubt whatsoever, that families cope much better with adverse events if some basic legal preparations have been taken. Frankly, every adult should prepare a Will, a Power of Attorney and an Advance Directive, which is a statement of their treatment preferences in the last stages of illness. If everyone were to take these simple and cheap legal steps much distress and difficulty and unnecessary expense for families would be avoided. And remember, many pensioners in Scotland can get legal aid for Wills, Powers of Attorney and “living wills” so there may be no expense involved at all”.
Posted in General, Legal Aid, Our News, Wills and Executries | No Comments »
Tuesday, November 1st, 2011
Housing Minister, Keith Brown has announced extra funding for the LIFT Scheme. This is a government sponsored scheme designed to help first time buyers to buy houses inScotland. The scheme is intended to target in particular, those on low or moderate incomes and to assist them buy their first house. Effectively, the government provides an interest free deposit to house purchasers wishing to buy in the lower cost sector of the market – often called the “starter home” sector. In return for the interest free deposit the Scottish Government effectively takes an equity share in the property. A further £4.65 million housing is being made available to help the Open Market Shared Equity, part of the overall Lift scheme. This is that part of the LIFT scheme which allows purchases of second hand properties as opposed to “new builds”.
Figures suggest that the new money available could help around 250 first time house buyers into the market.
David Borrowman, Managing Partner of Caesar and Howie, welcomed the announcement but suggests a sense of proportion be retained by all in considering the effect on the market.
David comments “Caesar and Howie favour the Lift scheme – we have introduced it to many of our clients and they have found it useful to them in getting a start on the housing ladder. So it is good news if more money is going into LIFT – this is really a good scheme for young house buyers. There are two things, however, which would make this scheme much more effective. The restriction in giving these funds to tenants renting in the private sector should be removed. Plenty of private tenants are desperate to buy and with private rents going up, this group may be needs more help than those tenants of social landlords – yet these tenants are given priority under the scheme. Also the amounts of money going in are pretty limited. The Scottish Government are right to look at ways of helping first time buyers. When a first time buyer buys a property the seller usually buys a new property as well. That means you could give the market a much needed fillip with this LIFT scheme. But in all honesty at this funding level it is a bit like firing a couple of airgun pellets when you really need a barrage of artillery to get a result. When the City ofEdinburgh District Council(of all institutions) can find £150 million to fund social house building this government investment of under £5m in LIFT looks feeble. So I would say to Mr Brown – you are on the right track – but much more money please if you want to get the market buzzing again.
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