Another option to consider with Equity Release is the Home Reversion Plan.
In simple terms you give up full or a partial percentage of the value of the house in return for a loan of some money.
The market value of your property is calculated by the home reversion company and the amount they will lend you is typically 35-60% of this market value. You will then enter into a lifetime lease with the reversion company giving you the right to remain in your property (normally rent free or if not a nominal rent may be charged) until you go into long term care or pass away. The reversion company will then sell your property and take their percentage out of the sale proceeds with the remainder passing to you or your estate.
There are many advantages and disadvantages about this type of equity release scheme.
Advantages
- • If you only sell a percentage of your property you can guarantee leaving a percentage to your estate.
- • You can normally go back to the reversion company and sell a further share to borrow more money.
- • Normally the amounts you can borrow are greater than a lifetime mortgage but is still age related
Disadvantages
- • If you die soon after taking out the scheme this could end up being quite expensive.
- • You lose ownership of part or all of the property.
- • You must adhere to the terms of the lifetime lease.
- • Only normally available from the age of 65 compared to 55 with a lifetime mortgage.
We as a company only use lenders who are SHIP (Safe Home Income Plans) registered. One of the main guarantees that SHIP registered companies agree to offer is a “no negative equity guarantee”, meaning that the amount you owe will never be more than the value of the property that the loan is secured on. They also adhere to other SHIP conditions which can be viewed within their informative brochure they produce here.
If you are interested please give us a call on 01902 847920 or fill in your details on thecontact form and someone will be in touch within 24 hours.
Our first initial consultation will be at no expense to you. Subsequent consultations may incur a charge. Pleaseclick here to see a copy of our fees and charges.
This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.
CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.
Professional introductions
Equity release can provide a solution to many different scenarios. It may not have been something that you or your clients have even thought of as a solution to a problem. So if you are a mortgage broker (who doesn’t advise on Equity Release), an IFA, Solicitor or Accountant, we are always looking for professional introductions. We may be able to provide your clients with the solution they have been looking for.
PleaseClick Here to email us or contact us on 01902847920 or 07740504570