The Asset Income Plan is a unique product producing a 5%pa return on half the value of unencumbered property or land.

1. ASSET INCOME PLAN
Key Facts Document
Important Information
This is an important document which you should
keep along with the enclosed Personal Illustration
This Key Facts Document gives you the main points about the Asset Income Plan (“the
Plan”) you are considering. The illustration shows the income you may get in the
future. Please read this Key Facts Document with your illustration and keep them with
your Plan documents in a safe place.
The Product:
The Asset Income Plan.
The Aims:
To provide you with a regular quarterly income to help meet your financial commitments. This is
intended to supplement your current income.
Your Commitment:
To give us all the information we ask for when applying for the Plan, in order for us to establish its
suitability for you.
To agree to assign up to 50% of the value of your property to an Insurance Company for the 10 year
term of the Plan in exchange for a quarterly income.
To ensure that your property has adequate buildings insurance in place during the term of the Plan.
To tell us immediately should the property need to be sold for reasons of death, divorce, bankruptcy,
move to a care home or moving home.
To let us know in advance whether you would like the Plan to be renewed/extended at the end of the
term.
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Copyright 2011 © Asset Income Plan Asset Income Plan Ltd. 9 Devonshire Square, London, EC2M 4YF V2 – 30.03.2011

2. Risks:
Although 50% of the value of your property will be assigned to an Insurance Company, the Insurer will
arrange re-insurance so that, should the Insurer become insolvent, the re-insurance will pay off the
charge and you will not therefore be required to sell your property.
Q & As:
Who is eligible for this Plan?
The Plan is available to anyone from age 18 upwards, as long as the asset they own is
mortgage free and situated in the UK. If you are a non-UK resident and you own a property
with no mortgage situated in the UK, you will also be eligible.
The plan can also be taken out by Trustees or companies.
How does the Plan work?
A charge is registered on your property and assigned to an Insurance Company, who in turn
will pay a regular income to you. The amount of income is fixed for the 10 year term and is
payable quarterly in arrears, gross with no tax deduction, although you may be liable for
income tax at your marginal rate.
Is there a minimum property value?
The minimum property value for this Plan is £100,000. Further charges on the same property
for this Plan are not allowed.
Is there a maximum property charge?
The maximum property charge is £5,000,000 (five million pounds).
Is there a property charge range?
The maximum percentage charge is 50%, however, lower percentage rates can be applied for,
ranging from 10% to 50%, subject to certain limits.
What types of property qualify for this Plan?
Property located only in the UK, including England, Scotland, Wales and Northern Ireland, will
qualify for the Asset Income Plan. The following property types will qualify:
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Copyright 2011 © Asset Income Plan Asset Income Plan Ltd. 9 Devonshire Square, London, EC2M 4YF V2 – 30.03.2011

3. UK Residential Property:
Main residence
2nd home
Buy to let
Furnished holiday lets
UK Commercial Property:
Offices
Warehouses
Retail Units
Storage Units
Sports and Social Clubs
Pubs, Clubs and Restaurants
Hotels including Bed & Breakfast
Care homes and Rest homes
Garages
Showrooms
and any other type of commercial property
How much income will I receive?
Regular income payments are set up at inception equal to 5% of the charge amount per
annum, payable to you quarterly in arrears. This amount is fixed and is not affected by
movements in property values during the lifetime of the Plan.
What about tax?
The regular income is paid gross on a quarterly basis. It is your responsibility to declare the
income and pay the appropriate tax.
In the event of a jointly owned property, the income is treated as follows. For joint tenants the
income is treated as being payable in equal amounts to each party and each is responsible for
meeting their own tax liabilities. For tenants in common the income is divided as per the
percentage division of the property and each is responsible for meeting their own tax
liabilities.
In the event of a property owned by a company, trust, commercial or charitable organisation,
the income will be payable to the deed holder who should account for the income for tax
purposes.
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Copyright 2011 © Asset Income Plan Asset Income Plan Ltd. 9 Devonshire Square, London, EC2M 4YF V2 – 30.03.2011

4. What happens at the end of the Plan?
On the 10th anniversary, the Plan will end and the charge will be lifted from the property. All
income payments will cease. There will be an option to renew the Plan for a further 10 years,
subject to the terms and conditions applying at that time.
What are the costs and charges?
Initial charge
There is a standard survey fee for all residential properties, payable on application, of £65
including VAT. For UK commercial property the survey fee operates on a tiered basis as
shown in Appendix 1.
Legal Advice
No legal advice is offered by the product provider. However, you will have the opportunity
to seek legal advice prior to proceeding. Any cost for this advice will be met by you.
What are the early exit options?
Residential:
You can exit the plan before the end of the 10 year term, under a select number of
conditions:
Death
Divorce
Move to a care/rest home
Bankruptcy
Property Sale
In all of the above cases, a 90 day notice period would apply, during which time there
would be no further income payments made.
Commercial:
You can exit the plan before the end of the 10 year term, under a select number of
conditions:
Death
Divorce
Insolvency
Administration
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Copyright 2011 © Asset Income Plan Asset Income Plan Ltd. 9 Devonshire Square, London, EC2M 4YF V2 – 30.03.2011

5. Property Sale
In all of the above cases, a 180 day notice period would apply, during which time there
would be no further income payments made.
What happens if the property owner dies during the term of the Plan?
If the plan holder dies during the 10 year term, the income will continue to be paid to the
deceased’s beneficiaries until the plan finishes after 10 years. However, if the beneficiaries
prefer, the plan could terminate with the standard notice period being served.
After the 10th anniversary the plan will finish and the charge will be lifted.
Do I have to insure the property?
You must ensure the property is fully insured for the cost of re-building the property. Failure
to do so would mean that the Plan would cease and all income payments stop.
Asset Income Plan Limited reserve the right to inspect the certificate of insurance from time to
time.
In the event of a fire, flood or other natural disaster the plan will continue as long as the
insurance policy in place returns the property to its original value. Should the necessary
rebuild not take place the Plan will be cancelled under the Early Exit clause of 90 days for
residential property and 180 days for commercial property during which time no further
payments will be made. Should insurance cover not be available when required the Plan will
be cancelled immediately and a penalty equal to 90 days income for residential property and
180 days income for commercial property will be payable.
If I am receiving any state benefits, will my eligibility for them be affected?
If you are receiving means tested benefits, the extra income you receive from this Plan may
affect your eligibility for them. You should refer to the relevant benefits agency for further
information on this matter and take further advice from your financial adviser.
What if I change my mind?
You have 14 days from the date of offer to change your mind and cancel the Plan, without
incurring a charge or penalty. Outside of the 14-day “cooling off” period the Plan can only be
cancelled in line with the Early Exit options detailed above.
The Asset Income Plan is governed by the laws of England and Wales.
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Copyright 2011 © Asset Income Plan Asset Income Plan Ltd. 9 Devonshire Square, London, EC2M 4YF V2 – 30.03.2011

6. Appendix 1:
UK Commercial Property Survey Costs
Market Value Fee
From To Exc. VAT
£1 £1,000,000 £950
£1,000,001 £2,000,000 £1,750
£2,000,001 £3,000,000 £2,250
£3,000,001 £4,000,000 £2,750
£4,000,001 £5,000,000 £3,250
£5,000,001 £6,000,000 £3,750
£6,000,001 £7,000,000 £4,250
£7,000,001 £8,000,000 £4,500
£8,000,001 £9,000,000 £4,750
£9,000,001 £10,000,000 £5,000
£10,000,001 and above POA
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Copyright 2011 © Asset Income Plan Asset Income Plan Ltd. 9 Devonshire Square, London, EC2M 4YF V2 – 30.03.2011