Philip Spiers, managing director of NHFA Care Fees Advice

With over 15 years experience of specialising in and advising on long-term care funding, Philip has been a regular contributor to professional journals, National press articles and TV and radio broadcasts. He has been involved in Government consultations on care, the OFT report on Care Homes, Consumer Association reports and a report by the Department of Health and FSA into regulation of long-term care advice.

About www.hsbcpensions.co.uk:

Since 1991, we have helped thousands of families cope with long-term care problems. We provide advice to individuals who have little or no capital on issues such as rights to care services, local authority charging procedures, obtaining Department for Work & Pensions (DWP) benefits or meeting fees.

We also produce an extensive range of fact sheets providing individuals and those advising others with the information they need to obtain what they may be rightfully entitled to.

The advice and information provided by NHFA is independent and entirely funded by income derived from financial advice given. For example, many of the families that contact us because a relative has to pay for their own care do so because the funding of care fees is a complex area.

They may be unaware of non-means tested State support available coupled with needing to understand the financial products specifically designed to enable care costs to be met with the potential of preserving capital. NHFA Advisers are specialists in this area as well as having empathy towards the needs of older people who need care.

For more information visit www.hsbcpensions.co.uk.

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Q&A forum

Downsizing option 25 July 2008 [0 comments]

We have lived in our very large house in a very small village for nearly 25 years, where we have built a life and are very happy. The house now has a very high value in financial terms.
However, we are now looking at the prospect of having to make a downsize move, mostly because of the financial implications of owning a house of this size, such as higher heating bills, council tax, insurance and other essential expenditure.
We have looked into the area of equity release schemes but have constantly been told that it is more cost effective to downsize to a smaller property. However, even if we did downsize to such a property, it would still be of a high value in this area.
Additionally, it would be very expensive to make this move, considering the potential costs involved in moving home. We have calculated that it will cost us close to £100,000 to move, taking into account estate agent fees, legal fees, stamp duty and various moving costs. This £100,000 is immediately wasted and, on a personal note, we would have to start a new life in our retirement.
These factors therefore bring us back to equity release. We would require an additional income of up to £20,000 per annum for possibly a ten-year period before we need to move. If the calculation was for a property valued at £1.5 million, we would only need an increase in the property value of around two per cent a year to cover the withdrawal of £20,000 for income and the interest payments. Would this be the preferable solution in investment terms for our situation, rather than taking the money out of the property by downsizing, especially in view of the current outlook for house prices, and then investing the funds elsewhere and paying more tax on the funds we have released?
G Boot, Kent