Standard life Endowment surrender help

mikeg1

I have an endowment which I want to surrender to clear some debts.

The Endowment has a surrender value of £13,915.
Life With Profits Fund - units 2803 @ £217.9 = £ 6107.85
Managed Fund - units 425 @ £1698.10 = £ 7217.56

I pay £76 pm, and have 12 years to run.

My question is having poor knowledge in this area is do I simply surrender to Standard life, or do I contact one of the companies you hear about who offer surrender values.

The policy was for an earlier mortage, which is now used to secure £47k of my current mortgage (the rest is repayment).

Lastly do I have a case (excuse my ignorance here) of having an endowment undersold.
Standard life estimated values at maturity are:
Low £29k, intermediate £34.8, high £41.8 k

Many Thanks

dunstonh

My question is having poor knowledge in this area is do I simply surrender to Standard life, or do I contact one of the companies you hear about who offer surrender values.

Its unit linked so you cant sell it.

Lastly do I have a case (excuse my ignorance here) of having an endowment undersold.

What do you mean by undersold? If you are referring to mis-sale then you are too later. Std Life time barred all theirs and the time limit ran out around 2006-2007. Plus underperformance is not grounds for complaint.

Dont forget any mortgage endowment promise value that would be added on at maturity. If you surrender, you dont get a penny of that. If the MEP value is only a couple of hundred pounds it may not be much to worry about but if its in the tens of thousands then that is a big loss to suffer.

mikeg1

dunstonh thanks for your reply, it is appreciated.

Clear then only option is to surrender to from Standard life. What difference does it make that it is unit linked ?.

Not clear about your second point 'endowment promise value ', I am not sure if I have this. Is this where any shorfull to the total I need to achieve (£47k) is made up by Standard life ? - if so I am not sure how to check if I have.

Thanks again

dunstonh

What difference does it make that it is unit linked ?.

If has a daily value. i.e. there is a unit price. So, if wanted £x of the fund you are in then I would buy them at that unit price. There is no reason for me to pay you any more for them. Non unitised With Profit funds have retained benefits that build up as you go along and are lost on surrender. So, there is some value in someone paying more than the surrender to get those benefits.

Not clear about your second point 'endowment promise value ', I am not sure if I have this. Is this where any shorfull to the total I need to achieve (£47k) is made up by Standard life ? - if so I am not sure how to check if I have.

Its unlikely it would make up the full shortfall but its a figure that is added on maturity based on the shortfalls many years ago. If you phone standard life and ask them if your endowment has a mortgage endomwent promise and what the figures are if it does, then that may be the easiest way. If you keep old statements then it was declared around 2001-2003 what you would possibly get (its a range between two values typically). However, Std Life have generally kept quiet about it since then but its still exists. If you have an IFA, then the IFA is told the MEP value every year.