mooky Posted February 2, 2009 Share Posted February 2, 2009 I am selling my home in France, and may have a buyer. This is a bit of a shock as I thought noone was buying. I am now in a bit of a dilema. I am going back to the uk. I was waiting until november (If I had sold my house) because I have a endownment policy that finishes then. It is a with bonus one. I have been wandering if to cash it in now.If I am moving now I could do with the money now, to put towards buying in UK, moving,ect. Last August a surrender value was £47.656, today when I asked it was £43.000. I know I will lose my bonus If I surrender now, but I am worried that it will be going down anyway, and bonus may not be much either. Please, what is best to do. I am a pensioner so suffering a little anyway. Link to comment Share on other sites More sharing options...
Benjamin Posted February 2, 2009 Share Posted February 2, 2009 It's too difficult a question to answer without knowing more figures, especially the likely size of the terminal bonus (which I wouldn't expect you to put on the forum). [:D]Look at it this way; do you think your present valuation is likely to fall by more than the anticipated bonus between now and November? A difficult question for even the most seasoned forecaster to know (which isn't me incidentially). A lot of people think the markets are at or close to the bottom and may just drag along until the economy picks up slowly sometime in 2010.If the markets drop further this should also have a further downward effect on UK property prices so you should win if that happens. Incidentially, if buying in the UK now or soon especially if for cash or with a large deposit, play very hard ball with the vendors. [6] Link to comment Share on other sites More sharing options...
freddy Posted February 2, 2009 Share Posted February 2, 2009 There us another option which is to sell the policy to third party - I know this usually gives a better value than surrender but I assume that the differnce gets smaller as the end date approaches. This article http://www.thisismoney.co.uk/mortgages/endowments/article.html?in_article_id=417514&in_page_id=55 explains it somewhat - the benefit in your case could also be that you should get a pretty good idea what the expectation of the terminal bonus might be based on what is offered. Link to comment Share on other sites More sharing options...
Bob T Posted February 2, 2009 Share Posted February 2, 2009 Mine matured in December. I have been asking for the surrender value every month for the last year and was told every time to let it run as the terminal bonus was 26%. On the day of the surrender I got a final payout document with no 26% on it. When I complained, I was pointed to the clause which said that the company could change the bonus at any time at their discretion. They did and it was 0% on maturity.I spoke to the financial ombudsman only to be told that this was quite common and there was nothing that could be done about it.I suspect that most endowment policies go this way. Link to comment Share on other sites More sharing options...
Bluebells Posted February 2, 2009 Share Posted February 2, 2009 also if you cashed it in now, would you not have to pay tax on it over here as worldwide income although tax free in the uk? Link to comment Share on other sites More sharing options...
parsnips Posted February 2, 2009 Share Posted February 2, 2009 [quote user="Bluebells"]also if you cashed it in now, would you not have to pay tax on it over here as worldwide income although tax free in the uk?[/quote]Hi, If it has an element of life insurance within it, and has been held for more than 8yrs it would qualify for 9200€ relief on the gains, which are the only taxable part.Post edited by the moderators. In accordance with the forum Code of Conduct, please do not post messages which Incite illegal activity. Link to comment Share on other sites More sharing options...
Ron Avery Posted February 3, 2009 Share Posted February 3, 2009 Post edited by the moderators. Isn't that advice a breach of the Forum code of conduct as it incites an illegal act which would deprive the French Government of tax revenues which could be used for the improvement of the lives of the less well off amongst our adopted countrymen[:P]? Link to comment Share on other sites More sharing options...
Hester Posted February 3, 2009 Share Posted February 3, 2009 [quote user="freddy"]the benefit in your case could also be that you should get a pretty good idea what the expectation of the terminal bonus might be based on what is offered.[/quote]Thanks for that freddy. I too am considering surrendering or selling my policy. It has nearly two years left and I was trying to hold out for the final bonus, especially as there have been no annual bonuses for a few years. However I need it now and as I don't think that it will make very much more I have enquired re. surrendering/selling. The insurance company sent me a form which they will then send on to potential buyers for them to make me an offer. I was wary of this and thought that I would prefer to go through my insurance company, but now I think that I may as well see what figures the third parties come up with. I would expect to enter the profit on my 2010 tax form should I sell this year.Regards Hester. Link to comment Share on other sites More sharing options...
mooky Posted February 3, 2009 Author Share Posted February 3, 2009 I enquired about selling mine to a third part yesterday, but no one will do it;It is on track I keep getting green letters saying so. It say I should get a bonus of between 7.000 and 11.000. My son is quite insistent that I don't cash it in. He thinks I will get a bonus. I don't. Parsnips,I can't do anything illegal like not stating I have cashed it in. I am a priest, and don't do such things. If I cash it in though I would pay everything off here and move straight back to UK anyway. If I sell my house now I would be hrd pressed to pay removals, bills off ect without it and may have to stay here until it runs its course in Nov. I would be narky at myself if I lost thousands though. I don't think I will. Link to comment Share on other sites More sharing options...
Bob T Posted February 3, 2009 Share Posted February 3, 2009 If no third party is interested in buying your policy, then I suggest that the final bonus will not be there when it matures. Exactly the situation that I was in. Link to comment Share on other sites More sharing options...
Judith Posted February 3, 2009 Share Posted February 3, 2009 I had two endowments mature, one last year, one a couple of year's previously. Neither got any terminal bonus (nor much in the few years before). Suspect that will be the same with yours. They are not giving anything more away than they have to at the moment, I guess. Link to comment Share on other sites More sharing options...
BJSLIV Posted February 3, 2009 Share Posted February 3, 2009 Which company issued the policy? Link to comment Share on other sites More sharing options...
Chezstevens Posted February 3, 2009 Share Posted February 3, 2009 Anybody recently received an endowment from an amicable scottish company that had been taken over by a financial company from the Fens - hopefully masked sufficiently. If so How did it fair against the recent bout of green letters? Link to comment Share on other sites More sharing options...
parsnips Posted February 3, 2009 Share Posted February 3, 2009 [quote user="Ron Avery"]Post edited by the moderators. Isn't that advice a breach of the Forum code of conduct as it incites an illegal act which would deprive the French Government of tax revenues which could be used for the improvement of the lives of the less well off amongst our adopted countrymen[:P]? [/quote]Hi, Why not post a sensible answer, people will appreciate it more? Link to comment Share on other sites More sharing options...
bubbles Posted February 3, 2009 Share Posted February 3, 2009 We have one, taken over by Phoenix.Got another 4 years to run, though. Have a feeling we are paying good money after bad but would love to hear otherwise. Link to comment Share on other sites More sharing options...
Bob T Posted February 3, 2009 Share Posted February 3, 2009 Mine was a Royal Life policy also taken over by Phoenix. They told me 23 days before maturity that there was a 26% terminal bonus and then there was none. It is in the small print that they can change the terminal bonus at any time that they please. Link to comment Share on other sites More sharing options...
bubbles Posted February 3, 2009 Share Posted February 3, 2009 when did it mature, bob? Link to comment Share on other sites More sharing options...
bubbles Posted February 3, 2009 Share Posted February 3, 2009 mine was also royal life/sun alliance, scottish amicable - all of those!!!! Link to comment Share on other sites More sharing options...
Bob T Posted February 4, 2009 Share Posted February 4, 2009 [quote user="bubbles"]when did it mature, bob?[/quote]End of November 08 Link to comment Share on other sites More sharing options...
mooky Posted February 4, 2009 Author Share Posted February 4, 2009 countrywide assured Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now