Well now there is for sure – With Shaw Insurance.
Introducing the Care Property Bond (CPB) – An exciting, innovative new solution to funding residential care.
Neither an equity release product nor a deferred payment agreement, the Care Property Bond is an annuity policy that pays a monthly, tax-free agreed amount to top up any pensions or investment income, sufficient to meet the cost of care for life. What’s more, the main purpose of the Care Property Bond is to use the customer's home to raise much needed finance for care home fees and to preserve the possibility of passing back the property to the customer or to the next generation – an objective of so many. Another key feature of the Care Property Bond is that no upfront cash payment is required to take advantage of the Care Property Bond.
Remember this is NOT an equity release mortgage product nor a type 7 deferred payment agreement
"Tax-free" really does mean that the income is not subject to any tax on the customer under the current laws in England and Wales. Please note that tax legislation is subject to change.
Care Assessment Only
There are no medical reports or examinations required for the Care Property Bond only a care needs assessment and mental capacity assessment.
You and your family will be required to obtain advice from a regulated financial adviser and from a solicitor.
The Care Property Bond provides the additional funding to purchase the care you need, in a registered care home of your choice.
Preserve your inheritance
The CPB is a NEW way to fund residential care and keep the possibility of passing on the family home, or leaving a financial legacy, for the next generation.
We need to check that your property fits the criteria for The Care Property Bond. Please complete our simple suitability calculator.
Great, it appears the Care Property Bond would be suitable. Please call our Customers Services Team on 0800 999 2273 quoting CPB001. They will provide you with detailed information.
Thank you. It appears that the Care Property Bond may not fit with the achievable rental yield on your property. To clarify the details, please call our Customer Services Team on 0800 999 2273 who can check in detail the suitability.
The Care Property Bond from Shaw Insurance is designed for elderly homeowners who need to raise additional finance to contribute to the cost of care in a residential care home. It is an alternative to the sale of the elderly person’s home in the open market to raise cash. When a family is under time pressure to make decisions, the Care Property Bond is a convenient way to raise money to finance residential care in any registered care home.
The main purpose of the Care Property Bond is to use the customer’s home to raise much needed finance for care home fees and to allow the customer to pass on the net equity in the property after some of the equity has been used to pay towards care home fees.
The Care Property Bond also preserves the possibility of passing the property back to the customer or to the next generation. It is an objective of many people to pass on a property to the next generation.
The Care Bond pays a monthly sum tax-free to a registered care home for the entire life of the customer which is needed to top up the customer’s income from pensions and investments. Please note that tax legislation is subject to change. “Tax-free” really does mean that the income is not subject to any tax on the customer under the laws of England and Wales.
A unique feature is that the elderly homeowner does not pay in cash upfront for the Care Property Bond or for the charges of Shaw Insurance.
The customer pays in “kind”. The customer’s property is swapped for the Care Property Bond . The property is then mortgaged, renovated where necessary, and rented out. The rent is used to meet the interest on the mortgage and other outgoings concerning the property.
The customer and his/her personal representatives may give notice at any time to Shaw Insurance to unwind the arrangements and may require a transfer back of the property (for a price equal to the accrued mortgage debt together with any tax, and charges and expenses of Shaw Insurance Group).
On the death of the customer, the property will be rented out and the net rental income after tax will be used to pay off the accrued mortgage debt and the costs, charges and expenses of Shaw Insurance Group (defined in the section entitled “Shaw Insurance and other parties”) and any tax until such time as the property is debt-free and can be transferred to the beneficiaries of the customer’s estate.
This course of action may not always be practicable or desirable. The personal representatives of the customer may require Shaw Insurance to:
Sell the property and receive the net proceeds of sale (after repayment of the mortgage and deduction of costs, charges and expenses of Shaw Insurance Group and any tax); or
Transfer the property to the beneficiaries of the estate for a price equal to the amount of the outstanding mortgage and costs, charges and expenses of Shaw Insurance Group and any tax.
These decisions can be deferred in the light of the circumstances prevailing after the death of the customer. The most immediate priority of most families is to find enough cash to pay the care home fees. The Care Property Bond may serve to reduce financial stress at a time when health and care issues are the real priorities.
Click here to read the full brochure on the Care Property Bond. Please refer to the title section entitled "What are the risks?"
Shaw Insurance Limited is incorporated in Guernsey under the Companies (Guernsey) Law 2008, as amended and is licensed by the Guernsey Financial Services Commission under Section 7 of the Insurance Business (Bailiwick of Guernsey) Law 2002 to carry on long term insurance business. “Shaw Insurance” is the trading name of Shaw Insurance Limited.
Registered address: Albert House, South Esplanade, St Peter Port, Guernsey, Channel Islands GY1 1AW, Registration Number 62090
Shaw Insurance is not authorised or regulated by the Financial Conduct Authority or by the Prudential Regulation Authority in the UK. Shaw Insurance is a wholly-owned subsidiary of The Shaw Foundation, an exempt charity, which focuses on innovation in respect of care for the elderly.
References to the “Shaw Insurance Group” means Shaw Insurance Limited and wholly-owned subsidiaries of Shaw Insurance which hold interests in a residential property swapped for a Care Property Bond.
© Shaw Insurance Limited, November 2018
F2 Financial Care is a trading name of F2 Capital Ventures LLP which is authorised and regulated by the Financial Conduct Authority. F2 Financial Care is responsible for the promotion of the Care Property Bond in the UK. This website is issued by F2 Financial Care as a financial promotion under Section 21 of the Financial Services and Markets Act 2000.
To obtain further information on how to apply for a Care Property Bond or to obtain a referral to a regulated third-party financial adviser, please call F2 Financial Care on 0800 999 2273 or email firstname.lastname@example.org or write to F2 Financial Care at 45 The Broadway, Cheam Village, Sutton, SM3 8BL.
My Care My Home Ltd is a leader in the field of whole-of-market advice on care issues. Its website, www.mycaremyhome.co.uk receives over 30,000 hits a day and its friendly free telephone advice-line is manned seven days a week. Telephone: 0800 731 8470.
BWCI Trust Company Limited has been appointed to act as the independent trustee by Shaw Insurance to hold assets representing at least 90% of the investor liabilities in trust in accordance with standard conditions of the licence of an insurer under section 12 of the Insurance Business (Bailiwick of Guernsey Law, 2002 (as amended).
No financial decisions surrounding residential care should be taken lightly. Below you will find links to the full brochure for the Care Property Bond along with a Key Features Document. Please refer to the sections concerning the risks relating to the Care Property Bond. Printed versions of these documents can be requested by calling our Customer Services Team on 0800 999 2273 (care).
1. Will I need a medical examination?
No, you will be assessed in respect of your care needs and you (and the holder of a Lasting Power of Attorney) will also be assessed in respect of your mental capacity by a care adviser from an agency retained by Shaw Insurance called My Care My Home Ltd. There is a questionnaire to be completed.
2. Do I have to sell my home now on the open market?
No. Instead, you could swap the property for the Care Property Bond. It would then be mortgaged to raise money to pay for the annuity and to pay for the set-up costs and any renovation costs. The property would be let out to generate sufficient funds to service a mortgage and other outgoings. The remaining unused equity would be returned to you if you wish to cancel the annuity or to your personal representatives after your death. The default option is that the property would continue to be rented out after your death to pay off the accumulated liabilities. If this is not practicable, your personal representatives might decide to request the sale of the property or to transfer it to a beneficiary for a price equal to the amount of the outstanding mortgage and legal fees and the payment of any outstanding charges, taxes and expenses of Shaw Insurance Group.
3. What happens if I have an existing mortgage on my home?
Depending on the amount of the annual annuity requested, Shaw Insurance Group may be able to arrange to repay a previous lender and refinance the previous loan through the Care Property Bond.
4. Is the Care Property Bond available to all home-owners?
No. It only works for an elderly home-owner who needs to go into care. The property must be capable of being put into “rentable condition” at a reasonable cost. The property must be in an area of demand for rental property at a reasonable rent that is sufficient to pay the finance costs of Shaw Insurance Group and other outgoings. The requested annuity must not be too large to be financed under the Care Property Bond.
5. Can a close family member rent the property?
Yes. Close family members may rent the property although under current regulations, they cannot be granted any entitlement to rent the property until after the Care Property Bond has been issued. As a result, they must move out of the property at the time of the transaction without any right to rent the property and they will have to demonstrate that they are acceptable tenants under normal commercial criteria.
6. Do I have to obtain advice?
Yes. You will be required by Shaw Insurance to obtain financial advice from a financial adviser regulated by the Financial Conduct Authority and to receive independent legal advice from a solicitor or conveyancer.
7. Is there FCA regulation?
Shaw Insurance is licensed and regulated by the Guernsey Financial Services Commission. Please note that:
(a) The UK promoter responsible for issuing the marketing literature is F2 Financial Care (the trading name of F2 Capital Ventures LLP) which is authorised and regulated by the Financial Conduct Authority;
(b) The third-party financial advisors of customers in the UK will be regulated by the Financial Conduct Authority.
In fact, all customers will be required to obtain advice from a regulated financial adviser.
Therefore, complaints about marketing and advice would be subject to UK regulation. If there were any complaints about maladministration, there is an ombudsman in the Channel Islands (CIFO) and it has the same limit (£150,000) as the Financial Ombudsman Service in the UK.
Have another question? All our Customer Services Team on 0800 999 2273 or email: CPB@f2fc.co.uk or simply click on live chat.
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