Donna Bradshaw, financial planning strategist at IFG Group

Donna started her career in financial services in 1987, working in pensions for Standard Life. She has always been interested in women’s issues and this eventually led to her joining Fiona Price & Partners Ltd, a specialist independent financial adviser to women, where she went on to become a director and shareholder. Donna now works with IFG Group, a financial services group with operations in UK, Republic of Ireland and other countries throughout the world, as financial planning strategist.

IFG Group Plc is a specialised financial services company listed on the London and Dublin Stock Exchanges.

Our International Trust and Corporate Services Division was established in 1975 and provides trust and corporate services in London, Geneva, Jersey, the Isle of Man, Ireland, Cyprus and the British Virgin Islands. We provide a complete range of offshore financial services including the formation and administration of trusts, companies and foundations.

We offer a discreet, personal and flexible service tailored to the needs of our international clients - both private and corporate, and build relationships based upon integrity and confidentiality.

Find out more at www.ifgint.com

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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