Asset Income Plan

assetincomeplan

“Income for homeowners”

“Improved turnover for businesses”

HavenINTERNATIONAL CONSORTIUM LTD

• Savings rates at record lows

• Poor investment returns

• Volatile stock market

• Pension plans not performing

• Salary not keeping up with inflation

• Ever rising costs

• Danger of redundancy

• Can’t afford to retire

• Forced to retire early

• Insufficient retirement income

� 8 interest payments

� 8 debt

� 8 erosion of equity/inheritance

� 8 loss of title to the property

� 8 punitive early redemption clauses

Would you prefer your property to earn rather than cost money:

Are you affected by any of the following?• Business struggling

• VAT man knocking at the door

• Bank withdrawn finance facility

• Cash flow compromised

Are you struggling to find a solution?Do you own your own home or business premises?

Your biggest asset, your home or business premises, could be the answer to your prayers...

The equity in your property, whilst it may have grown over the years, has never actually earned anything.

Traditionally there has always been a cost attached to accessing that wealth. Releasing equity has always been

seen as a “last resort” option with some or all of the associated downsides:

� 3 no debt or interest payments

� 3 no erosion of equity

� 3 no loss of title

� 3 no age requirements

� 3 no income requirements

The Asset Income Plan is the perfect opportunity to satisfy the needs of two disparate parties. You,

the property owner, can earn interest on your equity, paid for by the need for Insurance Companies

to increase their capital reserves, a demand made by the EU directive, “Solvency II”.

The Asset Income Plan has been created to

enable property owners to benefit from a much

needed quarterly income linked to the value of

the property. An income obtained without

borrowing, without paying interest, without

eroding the equity in the property and without

losing title to the property.

An independent financial adviser or mortgage

broker will discuss the suitability of the plan

to make absolutely sure that it meets your

needs. If so they will let you have an illustration

showing the income which the plan will provide

for you based upon the expected value of the

property. Assuming that you wish to proceed,

perhaps after further discussions with your

family and/or legal adviser, your property will

be valued and the quarterly income confirmed.

Your income will be paid to you by ‘A’ rated

or higher, nationally recognised Insurance

Companies to whom packages of equity in

many properties will be assigned. This helps

the Insurance Companies to comply with the

“Solvency II” EU directive which requires them

to increase their capital reserves in order to

continue to write their current levels and any

future insurance business. The contract term

will be for 10 years at which point the charge

will be automatically released with no debt or

interest payments due and retaining full title

to your property. For residential property

owners the contract can be terminated early by

giving 3 months notice, (during which time no

further payments will be received) for death,

divorce, bankruptcy, move to a care home or

moving home. For commercial property the

notice period is 6 months for death, divorce,

insolvency or administration. The contract may

also be renewed for a 2nd term according to

market conditions at the time.

How can the Insurance Companies afford to

pay you in return for the equity charge?

Well, under solvency rules, Insurance

Companies must have increased levels of

capital reserves to support the insurance

business that they write, not an easy task in

today’s economic climate.

Adding packages of property charges to

their balance sheets is a cost effective means

for them to write greater levels of business,

with the associated increase in profit more

than adequate to cover the quarterly

payments to you, the property owner. In

short, everyone wins, the Insurer can write

more profitable business and the property

owner earns an income in a way which has

never been possible in the past.

How does it work?

Graham & Janet Parsons:The Parsons paid off the mortgage on their 4 bedroom detached home on the south coast just over

2 years ago. In their late fifties, Graham is considering the possibility of semi-retirement which would

give them more opportunity to pursue their love of sailing, particularly in the summer months. However,

the reduced income could mean selling their current home and downsizing, which would affect the size

of inheritance for their children. Their IFA recommended the Asset Income Plan which would provide an

income of £13,750 every year for 10 years, more than enough to cover Graham’s reduced salary which

means they can stay in their current home.

Stuart AshtonStuart, 43, bought a small hotel 8 years ago with an inheritance of £600,000. He saw excellent growth

during the first 4 years but has suffered a fall in business since the infamous credit crunch hit. He loves

the business, is a very good host and does not want to sell the hotel. He feels his only other choice would

be to take a commercial loan, secured against the hotel, until business improves again, which he expects

to take another 2 or 3 years. He was lucky enough to broach the subject with his broker who suggested

the Asset Income Plan as an alternative. He is sure that the additional £15,000 per annum which the plan

will provide will help him through the hard times and increase his profit for the following 7 or 8 years.

Jim OvertonJim is in his late seventies and is struggling to make ends meet as price rises continue to outstrip his small

pension increases. He owns his delightful cottage, worth about £160,000 and his two sons and daughter

want him to consider equity release as a way to enjoy his life more from the income it would provide. But

Jim is worried that this would severely diminish the inheritance that he would love to leave to his children.

By taking the Asset Income Plan that his financial adviser showed him, Jim can now comfortably live without

fear of debt or interest payments, secure in the knowledge that his family will still benefit from the full value

of his home.

*These case studies are fictitious, but should help to illustrate how the Asset Income Plan can change people’s lives for the better.

Case Studies *

Am I eligible for the Asset Income Plan?Unlike most mortgage and equity release schemes

there are no criteria which might exclude applicants

other than owning a mortgage free property. There

are no age restrictions and no income or

employment restrictions.

Are there any capital or interest payments due?Traditional equity release, lifetime mortgage or

reversion plans require interest payments, build

up a debt that needs repaying or erode the equity

in your property. With the Asset Income Plan

there are NO payments due, either now or in the

future and NO loss of equity in your property.

Do I lose the title on my property?Absolutely not. A charge is taken on your

property and assigned to the Insurance

Company, but the title remains yours and the

charge is merely released at the end of the

term with nothing to pay and no loss of equity.

How much will this cost me?For residential property owners there are no

arrangement fees for setting up the Asset

Income Plan, although a standard valuation

fee is payable. For commercial property owners

the valuation fee would depend upon the

complexity of the valuation. Should you decide

to take additional legal advice this would be at

your own expense. Your financial adviser/

mortgage adviser may charge you a fee for

their advice.

How much income can I expect?The Asset Income Plan pays 5% of the value of

the charge taken (up to 50% of the value of the

property) every year for 10 years. A property

worth £200,000 would have a charge taken

of £100,000 which would earn £5,000 every

year, a total of £50,000.

What are the risks?The charge on your property will be assigned

to financially strong, nationally recognised

Insurance Companies. The chance of such

strong entities either defaulting on their

payments or going into administration are

very low, although not impossible. However,

should the Insurance Company become

insolvent, the charge on your property will

be protected by an insurance policy which

will pay the value of the charge which can

then be released by the administrator. The

only loss, therefore, would be of the

quarterly payments due during the

remainder of the 10 year term.

Any other considerations?It is important to understand that the

income produced is potentially taxable, paid

gross. The entitlement to certain State

Benefits could be affected by this plan so

you should check with your financial adviser.

This plan will only provide an income; if you

require a lump sum then there are other

options that may be more suitable.

Questions & Answers:

Code of PracticeAsset Income Plan Ltd. have appointed Haven International Consortium Ltd. to bring the Asset

Income Plan to the public domain. Together we aim to treat customers fairly, honestly and with

the utmost integrity. We aim to be transparent in all our dealings with customers, with both our

marketing material and our verbal and electronic communications; before, during and after the

acceptance of the Asset Income Plan.

The Asset Income Plan is governed by the laws of England and Wales. The Courts of England and

Wales shall be the forum for the resolution of any disputes relating to the plan. All plans shall be

subject to a 14 day “cooling off” period from the date of offer, during which the customer may

change their mind without charge or penalty.

The Asset Income Plan is a Non-Regulated Product, which means that you will not be covered by

the Financial Services Compensation Scheme. Advice on the suitability of the Asset Income Plan

should be taken from your qualified Independent Financial Adviser/Mortgage Adviser.

HavenINTERNATIONAL CONSORTIUM LTD

Haven International Consortium Ltd.2 Old Market PlaceAltrinchamCheshireWA14 4NP

Tel: 0161 928 9961 Email: [email protected]: www.havenic.com

V1 – 10.03.2011Copyright 2011 © Asset Income Plan