Lifetime Mortgages
and Home Reversion Schemes have proved very popular
for certain groups of people in recent years. Some people
have seen large increase in their property values since
the mid 1990s. Therefore it is no surprise that these
schemes have caught on. Some Retired People are particularly
attracted to using the value of their homes to increase
their monthly income. That said these products are only
suitable for certain groups of people: Homeowners with
a minimum age of 55 have access to these products although
some schemes do have a minimum age of 60.
There are a number of schemes on the market, but will
they match your requirements?
The answer is that they may do depending on your needs
and circumstances. However, as with all aspects of financial
planning, professional advice is needed, as there are
other considerations:
- Does the scheme allow you to move?
- What about downsizing?
These schemes could impact your entitlement to some
state benefits such as certain means tested benefits
and local authority grants.
These schemes may reduce the inheritance value of a
property and may mean that none of the property value
can be passed on to beneficiaries on death.
Our Specialists are on hand to discuss the options available,
pointing out the downsides as well as the benefits and
will be pleased to offer you advice.
We recommend that you take independent legal advice
before entering in to a particular Equity Release Arrangement.
We recommend that you consult your children.
A fee will be charged for a lifetime mortgage and home
reversion advice. The precise amount will depend on
your circumstances but we estimate on a loan of £100,000:
Initial Fee £495 plus £100,000 x 1.5% (£1,500)
= £1,995 total fee.
Home reversion plans and lifetime mortgages are complex
products. To understand the features and risks, ask
for a personalised illustration. |
