20 February 2007

Retirement Plus announces new fee deals

Retirement Plus is to increase its procuration fees to 2% of amounts released, as well as introducing a 0.10% trail fee. To introduce the new structure, Retirement Plus is also waiving fees payable by homeowners for a limited period.

The key features of the Fees Free Property Plan* are as follows:

  • Valuation fee and impaired life application fee payable upon application, but refundable on completion.
  • Completion fee of £795 is waived. This includes all Retirement Plus legal fees and disbursements, (except first registration of Title and Stamp Duty Land Tax on Amounts Released in excess of £250,000).
  • No cancellation penalties payable (except in exceptional circumstances where the value of the property has fallen)

The company has seen a positive market response to its products, particularly following the introduction of protected share and impaired life options. Managing director, Duncan Young said: An increasing number of intermediaries now recognise the value of equity release and the part it plays in financial planning. We are very keen to support this positive trend.

As of 1st March 2007 Retirement Plus will pay increased procuration fees of 2% of the amount released, within 7 working days of completion.

Retirement Plus is also leading the way and becoming the first equity release provider to pay an annual trail fee of 10 basis points (0.10%) on the original amount released. While trail fees are common in today's mortgage market, no other equity release provider currently offers this service to intermediaries.

Retirement Plus launched at the end of 2005 and gained SHIP accreditation in June 2006. The Property Plan is a form of home reversion but with some vital differences: the share of the property bought is at full market value; the share then only increases over time rather than any discount being applied at the start; a share of the property can be protected for the customer to apply to raise funds at a later date or for their family to inherit. The Property Plan is very flexible and can be tailored to changes that occur in the customers life.