5th February 2008

We're so fed up with Britain under Brown that 40% of us plan retired life abroad

THE EXPRESS

An increasingnumber of Britons are giving up on the UK to retire abroad, new research shows today. Up to two thirds of higher rate taxpayers plan on joining the so-called Silver Flight when they finish working.

They want to ditch spiralling council taxes, high energy bills and a faltering NHS and enjoy their autumn years in the sun. In perhaps a sign that many aim to get as far away as possible, the most popular destination is New Zealand.

The trend is growing - as many as 40 per cent of people working would consider living in Europe or farther away on retirement.

Pensions provider Scottish Widows has released findings which endorse the prediction that by 2050 more than three million British pensioners will have left.

The more people earn the more likely they are to want to leave the country at retirement, with 63 per cent of higher rate tax payers - earning more than GBP39,825 a year - aiming to move abroad at retirement, almost ten per cent more than the national average.

Men and women are equally keen to escape. Of those who would consider moving abroad, 56 per cent of men are "likely or very likely" to retire abroad, compared with 54 per cent of women.

Almost two thirds of Londoners admit they are "likely or very likely" to retire abroad. In contrast, people living in the rest of the South are the happiest to stay where they are, although 38 per cent would consider moving out.

The findings follow emigration trends, with figures from the Brits Abroad report, published by the Institute for Public Policy Research, showing that 5.5 million Britons live abroad and that a further one million may leave by 2011.

According to the Department of Work and Pensions one million people already draw their pensions abroad; 245,000 in Australia, 157,000 in Canada and a further 132,000 in the USA.

Mike Hoban, of Scottish Widows, said: “If you're hoping to be part of the Silver Flight you need to start planning now and seek financial advice. Whatever your age, the need to plan your retirement and to understand the options available regarding your personal and occupational pension schemes and investments, becomes increasingly important." He added: "If you're a taxpayer thinking of retiring abroad it is worth remembering that pensions are one of the most tax efficient savings schemes around and offer unrivalled incentives. If you take full advantage of tax benefits on your pension, you can even get the taxman to contribute to that dream place in the sun.”

PLACES WE MOST WANT TO LIVE
1) New Zealand
2) Australia
3) Canada
4) France
5) Spain
Source: The Royal Bank of Scotland.

Foreign countries where most British pensions are paid
1) Australia 245,000
2) Canada 157,000
3) USA 132,000
4) Ireland 105,000
5) Spain 75,000
6) New Zealand 47,000
7) South Africa 39,000
8) Italy 34,000
9) France 34,000
10) Germany 33,000
Source: Institute for Public Policy Research.

29th January 2008

BOSSES WANT A PLACE IN THE SUN.

By Roland Gribben
Telegraph

A luxury holiday abroad, along with the purchase of an overseas property, top the priorities of small business owners looking to spend or invest their profits, says Abbey Business Banking after canvassing 300 of them.

Five years ago an earlier survey showed 10pc had their sights on using profits to buy a house abroad while 11pc felt an expensive car was an appropriate vehicle to demonstrate success. This time round 62pc plumped for the expensive holiday and 32pc for a “place in the sun” with a foreign property while 28pc opted for the status symbol of a top of the range car.

Moving to a bigger house was the choice of 35pc.

A second home in the UK attracted a favourable response from 23pc and 12pc said they would consider buying a yacht with their profits.

The lure of the turf held attractions for just 1pc but 16pc said they would invest some of their profits in the education of their children.

Ian Wilson, managing director of Abbey Business Banking, said: “SME bosses work very hard for their money and it's clear they wish to enjoy the rewards of their success.”

17th January 2008

A PLACE IN THE SUN REVEALS THE UK'S TOP 20 DESTINATIONS FOR BUYING ABROAD: FROM THE SUBLIME TO THE SURPRISING.

According to a survey published today (17 Jan), in the form of A Place in the Sun magazine's annual Top 20 buying destinations, despite a raft of emerging markets and USA property prices down 30% on a year ago and a dollar weakened by 25%, it's the traditional sun-seeker's favourite Spain that takes the number one spot for the second year running.

Seven of the top ten destinations are European, with Cyprus (6) and Greece (7) performing consistently on the wish lists of UK residents looking for a home abroad, but Egypt is up three places and bubbling under (at 11) and threatening to break through alongside its North African counterpart Cape Verde (10).

Another interesting mover is Australia, which jumps from 20 to 15 as more UK residents than ever make a permanent move overseas (389,000 last year according to the Office of National Statistics) - as witnessed by the success of The Emigration Show at A Place in the Sun Live.

Says Richard Way, Editor of A Place in the Sun magazine: "What's really interesting about our annual Top 20 survey is that it shows UK buyers as traditional in one respect - in favouring Spain and France - but also willing to seek out new hot spots and investment opportunities elsewhere. When looking for a second home or a new life in the sun it seems that Spain's mix of great weather, rich culture and beautiful coastline is keeping the country at the number one spot, but buyers aren't afraid to consider Germany, Montenegro, Morocco, Las Vegas, Thailand or Dubai."

The UK's Top 20 overseas property destinations according to A Place in the Sun:

For a complete guide to the nation's favourite property destinations abroad, pick up a copy of Channel 4's A Place in the Sun magazine from any good newsagent. The annual Top 20 edition is published on 17th January.

ESTIMATED NINE MILLION BRITS WANT TO ESCAPE THE UK FOR A PLACE IN THE SUN*

• 68% of Spanish homeowners spend quarter of the year abroad

• Over five million Brits dislike their UK lifestyles

• 55% of would-be buyers consider holiday home within their pension pot

As the summer draws to a close and holiday-makers return to British soil, a recent NatWest International commissioned survey reveals that nine million Brits intend to escape the UK permanently.* Sadly, one in eight of us admit we don’t even enjoy our UK lifestyles.

One in three current and potential overseas homeowners intend to retire abroad (32%), but it is the 30 to 50 year olds with the greatest desire to take flight, of whom three quarters (72%) said they would consider leaving the UK permanently. The over 50s demonstrate they are creatures of habit showing more reluctance to leave their British lives behind them, but half (51%) still intend to move abroad. 

Mike Freer, Head of Business Development at NatWest International comments: “It is evident from our research that many Brits intend to escape the hectic British lifestyle to enjoy a more relaxed standard of living overseas. As the days get shorter and temperatures drop, now is the time when many dream of a life abroad. Surprisingly however, it’s the ‘middle-ages’ most keen to make the move, perhaps prompted by demanding jobs and continuous warnings to plan for the future.”

Almost 14 million British adults (31% of those polled are ), tempted by the great weather and ‘mañana’ lifestyle, dream of buying a place in the sun. Turning this into reality has become a genuine option for many. Despite assumptions to the contrary, holiday homes are affordable for many people. Half (51%) of those surveyed with homes abroad, paid less than £100,000 for their property and three quarters (74%) paid £300,000 or less. 

Spain remains the most popular holiday home hot spot with half of potential overseas property purchasers saying they would choose a Spanish location. Here, holiday homes are even more affordable than the average overseas property – only a fifth of Brits with Spanish homes questioned (21%), paid over £200,000 for their pad. Those with holiday homes in Spain also get a huge amount of use out of their properties - 68% of them spend at least a quarter of the year residing at their property.

Freer continues:“Buying a holiday home is a realistic option for many people and it needn’t cost the earth. With the right advice and a favourable mortgage, overseas properties can provide a fantastic lifestyle, great investment potential and somewhere to escape the chaos of life back home! With people increasingly looking to retire overseas, buying abroad can provide a realistic and affordable option for many.”

When considering buying abroad the majority of financially savvy Brits look towards the long term benefits of investing in a holiday home - 55% of would-be buyers would consider a holiday home as part of their pension pot and half (54%) are prompted by the investment potential.  Half (53%) also hope to make money by renting out their holiday home on a “commercial” basis.

NatWest International Personal Banking’s Spanish Mortgage offers loans in sterling and euro especially designed for UK nationals.  With Spain still being the most popular country to buy a second property, the Spanish Mortgage is ideal when planning to buy for either holiday or retirement purposes.

One of the problems associated with buying a property abroad is the language barrier. NatWest International helps overcome this as staff are bilingual in Spanish and English and can offer guidance at every stage. NatWest International also provides contact with English speaking estate agents and solicitors based in Spain.

For further information on the Spanish Mortgage visit: http://www.natwestinternational.com/spain

Some things still are better in the UK!

Edward Winiarski, James Hampden’s UK Divisional Director looks at the benefits of using a UK based Insurer and why things may still be better  in the UK when it comes to protecting your valued assets in Spain.

It may just be Marmite and HP sauce that ex pats miss when moving abroad, but another area where the UK is still undoubtedly best is in the protection of your valued property in the sun!

When buying abroad, whether a holiday or retirement home, everyone needs to know their investment is properly protected. When it comes to insurance there can be local variations in cover and language difficulties. To be safe rather than sorry one needs to compare policies offered locally with those offered by specialist UK brokers and insurers.

It is difficult to get exact numbers on overseas property ownership, but statistics show that between 800,000 and 2 million Brits own property abroad...and this shows no sign of slowing. Figures show in excess of 100,000 per year are buying…...although, probably not currently in Spain!

These buyers often don’t realise they can buy a policy from the UK Insurance Market, in fact less than 5% insure with a UK broker or insurer. Sometimes buyers are told by developers or lenders that they have to insure locally, but this is simply not the case.

There are some obvious benefits to insuring with a UK broker or insurer. Policy documentation and claims service will be in English.UK insurers and Hiscox in particular, offer wider covers than those available inSpain. Many features that UK clients take for granted are not standard on local policies.

Accidental Damage, for example is frequently not included in policies sold outside the UK. Also, each nation has its own peculiarities where for example in Spain a government backed insurance pool covers natural perils such as storms and floods but claims are often reduced through underinsurance or wear and tear!

Service levels tend to be higher with UK based brokers and insurers and documentation tends to be more comprehensive showing clearly what is insured and the terms and conditions of the insurance contract.

Policies sold in the UK have the protection of the UK regulator and policyholders have access to the Financial Ombudsmanshould a dispute arise.

Why Hiscox?

Hiscox are a specialist insurer offering an extremely wide scope of cover at competitive rates for most ‘ex pat’ and holiday home destinations around the world. They are familiar with local insurance customs and legislation including taxes, licensing and regulation.

Their covers are flexible, not everyone has a swimming pool! Why reinsure the structure if it’s insured by a community policy…there are ways around this.

Perils insured can include accidental damage and full cover is available for natural perils over and above the government backed insurance pool here in Spain.

The Hiscox range of policies offer cover with no ambiguities written in plain English, payable in Sterling or Euro .Hiscox offer ‘Interest free’ credit over 12 months for policies issued in Sterling through a UK bank account.

They have a high financial security rating and local representation and will be acceptable to your lenders if you have, or are considering, a mortgage.

They are well known for an exceptional claims service, with a ‘speed of settlement’ guarantee to pay interest on claims over £2,500, if monies are not paid over after 10 days from the claim being agreed! Claimsare dealt with in English via the UK, or if more serious in nature via G-Risk, a specialist firm of Loss Adjusters based in Spain. Hiscox claims have Spanish speaking staff too!

Hiscox subscribe to the Financial Ombudsman who’s services are available should a dispute arise.

Why James Hampden?

James Hampden is a UK based Lloyds Insurance Broker with substantial interests within the EU and worldwide as far as Australia. We are fully regulatedby the FSA in the UK for the sale of general insurance.

Our Private Clients Department based in Leicestershire provides a high quality, personal quotation and advisory service to ensure that all clients receive a policy totally appropriate to their needs.

James Hampden has chosen Hiscox as our preferred product supplier for Overseas Homes Insurance as we believe the combination of wide, unambiguous cover and exceptional claims service is without parallel in the Overseas Homes market today.

You can contact us via SVS or call Direct on 01530 565006 from the UK or 00 44 1530 565006 from Overseas. Please quote reference: OH/1004 SVS Projects International

Remember, discounts are available if your UK property also insured by Hiscox. Having the same insurer removes scope for disputes between insurers as to who insures what……….. so it really is the smart option!