Question? “If I could show you a plan that will pay you 100% current market value less a one-off payment which will cover your rent to live in the property for as long as you would like…… Would you be interested?
Because this is exactly what a Reversion Plan is – currently there is only one being offered by a major company.
Please find below some Frequently Asked Questions about these plans which have some very acceptable features.
What is the minimum amount I can release?
This depends on the type of product you choose, your property value and your ages.
What is the maximum amount I can release?
You can sell up to 100% of your property in England and Wales and 99.9% of a property in Scotland.
How is the cash sum calculated?
The cash sum depends upon the age and gender of the owner cccupiers, the current open market value of the property and the percentage of the property value being sold.
Who values my property?
An independent member of the Royal Institute of Chartered Surveyors and you may choose from an extensive panel of surveyors.
Which solicitor should I use?
As you need to have independent legal advice – you need to instruct your own solicitor. There are a network of solicitors specialising in equity release advice.
Ask for a list of contacts from this site.
From start to finish – how long does the process take?
From the first meeting with an adviser, it could take up to 90 days when the money is released to your solicitor.
What rights do I have to remain in my own home?
You are the legal owner and your occupation is guaranteed for the rest of your life, rent free.
What’s the position if I want to move in the future?
As long as your new home meets the property suitability criteria applicable at the time, you would be entitled to move to an alternative property.
How much is the interest rate and is it fixed or variable?
Because you are selling your property, the cash loan you receive is not a loan and therefore there is no interest to pay.
If I initially sell less than 100% interest in my property initially (99.9% in Scotland), could I sell a further percentage at a future date?
Yes. The further cash sum would be assessed on your age(s) at that time.
It would be subject to valuation of the property and the property having been maintained in accordance with the terms of the Lease (or Co-ownership Agreement in Scotland).
Of course, any further releases will be subject to conditions at the time of the release.
If you decide on the Lifetime Mortgage route and live too long – it’s possible that you will end up in negative equity – of course, as long as it’s a SHIP lender, there isn’t a risk to you but it does mean that there won’t be any inheritance to leave.
By using a Reversion Plan – you are guaranteeing to leave a legacy if you do not sell 100% of your house. This is because unlike a Lifetime mortgage – there is no interest to roll-up. So for instance, if you have sold 30% of your home, your estate will contain the remaining 70% after your death.