Higher Net Worth Homeowners

Hard-Working Families

Your property is likely to be your biggest asset, and one where you’ve probably put in a lot of time, effort and expense to make sure it works well for you. Sadly, the Government also recognises this financial value.

Of course, it’s not all bad, and you may have invested well over the years, and built the financial value of your home. And as we move through this difficult economic period, you may also need to factor in some of the decisions from last November’s Budget, such as:

Mansion Tax

This is applicable to homes valued over £2m. Those between £2m-£2.5m will face an added cost of £2,500; up to properties valued at £5m+, which will be taxed at £7,500. And, it’ll be an annual charge, in addition to the existing council tax liability.

It’s thought that 100,000 properties are to be affected. For some, the financial hit may be manageable, but the worrying aspect is that a number of those homeowners may be equity rich, but cash poor. However, it won’t come into effect until April 2028, and much may happen before then.

Salary Sacrifice Schemes

If you’re in the fortunate position not to need all of your income to cover day-to-day costs, then the Salary Sacrifice Scheme might be something you’ve utilised. The advantage of this scheme is that you can pay into your pension without paying National Insurance. Unfortunately, following the Budget, the Government imposed a £2,000 a year cap, before NI kicks in, albeit not in place until 2029.

Property & Life Planning

One of the biggest issues about the Budget, was all the uncertainty it caused in the months leading up to it. In fact, lots of decisions may have been set aside until the path ahead was known. Now that we’re at that stage, some of those plans could encompass:
– Renovations to the home.
– Seeking a new one.
– Tidy up of the finances, and mortgage needs.

For all of the above issues, we can be there for you, and help you take advantage of what loans may be on offer out there.

Family Protection Cover

Also, beyond your borrowing needs, you may wish to look at protection cover for yourself, your family and the home they live in.

It’s important to ensure that you have policies in place that will help protect (or replace) your income stream, should you fall ill, face an unexpected serious illness, or possibly die.

If any of these issues occur, then it’s quite likely that others (and yourself, if recovering) may be reliant on a lump sum payout, or ongoing income stream, to help meet day-to-day costs, and the mortgage payments.

Additional sensible initiatives to consider, such as:
– Wills – Worryingly, over half of all UK adults have not made a will (56%), and those that have, may want (or need) to revisit it.
(Source: Money & Pensions Service, January 2025)
– Guardianship Arrangement – If you have young children and, for example, both parents die at the same time, your children may, initially, be put into care, unless something like a Guardianship document is in place, which sets out your requests.

In fact, whatever your situation, we’d fully assess the suitability of the options on offer. And you can be reassured that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.