So how does it work?

The payment made to you and the maximum our share can increase to will depend on your age, gender and whether you are a single person or couple. To make sure the exchange is absolutely fair, an independent professional valuer will value your home.

The payment made to you will be expressed as a percentage of the value of your home. For example, if your home is valued at £200,000 and we pay you £40,000, the Retirement Plus share is 20%.

Every month our percentage share in your property will increase at a fixed rate which will be set at the time you take out the Property Plan. We will also agree the maximum percentage our share can increase, so you can guarantee a share of your property will be protected, no matter how long you live. Don't forget this Protected Share is the minimum share you will leave. Should you die or sell the property, your share of the property may be greater.

The costs of sale of the property are paid by you. If our percentage share of the property has reached its maximum level then we will pay the costs for our share leaving you to pay the costs of sale on your Protected Share. If your share doesn't actually cover those costs, we will pay them.

Click on the example below to see how it works

Equity Release with Retirement Plus - an example

An example

Let's say you're a couple aged 70. Your home is valued at £200,000. You wish to raise £40,000 - the Amount Released. In this case that's 20% of the value of your home, so Retirement Plus will have the rights to a starting percentage of 20%. Your share is 80%, in other words £160,000 of the value of your home. So in all, our joint shares total 100%.

The share of your property that we would be entitled to increases by a rate that's fixed at the beginning of the Property Plan, lets say 0.48% per month. The maximum our share can grow to is 52% - so you have a Protected Share of 48%.

The rates do change from time to time so please speak to your financial adviser about our current rates. Remember this is not an interest rate, it is the rate at which our ownership share increases. However, the rate that's fixed at the beginning of the Property Plan will never change. This rate is applied to our starting percentage which in this case is 20%.

At the end of the first year our right to a share of 20% in your property has increased by being multiplied by the fixed rate of 0.48% so our share is now 21.18% of the value of the property.

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