Equity Release Property Plan - Frequently Asked Questions

Eligibility

1. Who is eligible for a Retirement Plus Property Plan?

To qualify for the Property Plan your client must be at least 65 years of age and their property must be their principal private residence.

2. Can my client have an outstanding mortgage?

Any outstanding mortgage would need to be repaid upon completion of the Property Plan. The mortgage can be repaid from the Property Plan proceeds.

3. Is there a maximum age?

No.

4. Would you consider an impaired life?

Yes, please contact us.

5. Would you consider someone who has had County Court Judgements or been discharged from bankruptcy?

Such cases would be looked at on an individual basis. It would be dependent on when the action was registered and the reasons surrounding it.

6. If the property is currently owned in joint names, can the Property Plan be taken out in only one name?

No, the Property Plan must be in the names of all owners of the property.Back to top

The Amount Released

1. What is the minimum amount that can be raised?

We call the money your client receives the Amount Released. The minimum Amount Released is £25,000. The minimum property value is £80,000.

2. What is the maximum amount that can be raised?

The maximum amount available depends on the age of the applicant and the value of the property. We suggest you look at the calculator on our website for guidance. The maximum amounts that can be released are larger than those available through lifetime mortgages.

3. Can my client take the money in tranches?

No, the Amount Released has to be taken as a single payment.

4. Are further releases possible?

Yes, depending on the availability of funds at the time of application. Your client may apply 12 months after the first payment to release a further amount. However, if the maximum amount available to your client has already been taken, a further amount will not be available.

5. What are the costs for further releases?

The costs associated are expected to be on the same basis as the initial original amount released, please see the Tariff of Charges, which is subject to change in the future.

6. Can my client request a cap on the Retirement Plus share in the property?

Yes. They can keep back any percentage of the value of their property to create a cap on the Retirement Plus share, subject only to the Amount Released being in excess of £25,000. We refer to this as the Protected Share. This will provide them with the opportunity to request further amounts in the future or to retain that value in their estate.

7. Can I guarantee my client that there will still be something to inherit?

Yes, if they choose to keep back a share in the Property Plan then that will be the Protected Share that they will always have. In addition, the KFI shows the client exactly how much our share increases over time. They will be able to see what percentage of the property will be left in their estate before the sale costs, which must be met from their share.

8. Can my client repurchase the share owned by Retirement Plus?

Yes, your client can cancel the Property Plan and pay Retirement Plus the value of its share. An administration fee and valuation fee is payable which is set out in our Tariff of Charges. Your client is responsible for legal costs, Land Registry fees and any Stamp Duty Land Tax (SDLT).

9. What happens if the Retirement Plus share reaches its maximum?

If your client has used the whole of the property then the Retirement Plus share will increase until it reaches 99.90%, but they may have retained a Protected Share in the Property Plan so that the maximum level of our share is a lower percentage. Your client can remain in their home as long as they like. When the property is sold, we will receive the share of the sale proceeds that we have rights to. If there are costs which cannot be met from your client's share of the sale proceeds then we will pay them. If your client has retained a Protected Share, they will in any event pay the costs of the sale of that share.

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Flexibility

1. What happens if my client goes into long-term care?

As long as care home fees are paid and we are notified and satisfied that the property is well maintained, properly insured and secure there is no need to sell the property. However, your client should understand the financial implications of not selling as our share in the property will continue to increase and they must continue to pay all the costs involved.

2. What happens in the case of a joint application when one of my clients goes into long-term care?

The other partner may continue to live in the property.

3. What happens if my client wishes to move?

The terms of the Property Plan can be transferred to a replacement property if it meets our property criteria. If this new property has a lower value, then we will ask for a payment to be made to reduce the share of the value of the new property that we would be entitled to.

4. Can my client have someone live with them?

Yes, following agreement with us. However, anyone living in the property who is not party to the Property Plan will have to sign a waiver of occupation rights and, in the case of the death of your client, they will have to vacate the property. If they wish to ensure that they have lifetime rights to reside as well, then we may be able to accommodate this, but we may need to reduce our share in the property to reflect the additional life expectancy risk. This may result in a partial repayment to Retirement Plus.

5. Can my client let the property?

We will judge each situation on its own merits and look to agree where possible.

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Property Maintenance

1. Do you do regular property inspections and if so how often?

We may inspect the property annually. We will contact your client and make an appointment that is convenient to them.

2. Who is responsible for maintaining the property?

Your client will remain responsible for its upkeep even if it is empty. Although we will provide any help we can, if there is financial hardship.

3. Who pays for buildings and contents insurance?

This remains the responsibility of your client. The building must be insured in the joint names of your client and Retirement Plus. If the property is to be left empty for more than one month, your client must check that their insurance will cover this.

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Property Plan Details

1. Who owns the property?

The legal title of the property will be transferred into the joint names of Retirement Plus and your client.

2. Who pays Stamp Duty Land Tax (SDLT)?

Retirement Plus will pay any SDLT due on any Amount Released up to £249,999, payable when the Property Plan is first set up. If the Amount Released is for £250,000 or more, your client will be responsible for SDLT. SDLT may be payable by your client as a cost of cancelling the Property Plan.

3. What commission do you pay?

Please speak with our Business Development Team.

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Terminating the Property Plan

1. Who is responsible for selling the property?

Retirement Plus will appoint local property experts and solicitors to sell the property. We will be under a strict duty as a trustee to secure the best price reasonably obtainable in the circumstances at that time and conclude a sale as soon as prudently practicable.

2. Who bears the costs of selling?

Your client pays the sale costs. If there are costs which cannot be met from your client's share of sale proceeds then we will pay them. If your client has retained a Protected Share, they will in any event pay the costs of the sale of that share.

3. Are there any redemption penalties?

There are no specific penalties for early cancellation payable to us. If the Property Plan is cancelled within its first five years the value of the property used to calculate the Retirement Plus share will be the higher of the value at the start or the value at the termination of the Property Plan. A cancellation fee will be payable together with the cost of a property revaluation. Please refer to the current Tariff of Charges. Your client will also be responsible for legal, Land Registry and other costs and any taxes that may arise.

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We're here to help

1. How do I get a Key Facts Illustration?

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Go to your own home page in our secure area and use the application process. To logon click here.

2. How do I get a login for your website?

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We ask a few simple questions and will email back your unique details. If you need any help getting started, there is an Online System Guide in our Intermediaries Kit or you can call our Residents Service Centre on 0845 850 8510.

3. How do I get a Decision in Principle?

You can apply for this online. Provided the application fits our standard criteria the approval is instantaneous and you can print the DIP letter for your client. If they change their mind about what they want, you can apply for a different amount without having to key in a new application. The letters are stored on your unique home site so you can print as many copies as you wish, whenever you want - even after the Property Plan has been completed.

4. Can I apply online?

Yes. The application process is simple. Once you have filled in all the details you can print an Application Form which will be pre-populated with the data that has been captured. Simply check that all information has been filled in and is accurate, get your client's signatures, obtain proof of identity, age and address, complete the Know Your Customer form at the back of the Application Form and send to us, together with a cheque for the Valuation Fee. We do the rest.

5. How do I get an Application Form?

You can print a blank or a pre-populated Application Form that you create in our secure area. Alternatively call our Broker Contact Centre for a pre-printed supply of Application Forms.

6. Who do I call if I require further information about the Property Plan?

We have tried to provide all the information you and your client may need in our Intermediaries Kit and the Customer Brochure. Copies of the Customer Brochure can be downloaded from our website. Our Broker Contact Centre on 0845 850 8510 will be able to help you with any queries or further assistance you may require.

7. How quick is the process from application to my client receiving the Amount Released monies?

On average about eight weeks. We aim to get an Offer out within ten days of receipt. Once the Offer has been issued, it's down to your client's solicitor. Our solicitors are working to agreed service standards and will turn things around upon receipt.

8. Who do I call if I want to track the progress of my client's application?

Tracking applications has never been more simple. Your own home page shows you all your applications. You can get up to the minute information on what we are doing on each case, day or night!

9. I have submitted an application for a property but the details have changed. What do I do?

Call our Broker Contact Centre on 0845 850 8510 who will be able to help you with any queries or further assistance you may require.

10. Will I have a dedicated Business Development Manager?

Yes. You will have someone you can contact regularly. Call our Broker Contact Centre on 0845 850 8510 if you wish to arrange a call or visit.

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