How the Property Plan works

Let's say your clients are a couple aged 70. Their home is valued at £200,000 and they wish to raise £40,000 - the Amount Released. In this case that's 20% of the value of their home, so Retirement Plus will have the rights to a starting percentage of 20%. Their initial share is 80%, in other words £160,000 of the value of their home.

Click on the example below to see how it works

 

IFA table

The share of their property that we would be entitled to increases by a rate that's fixed at the beginning of the Property Plan. If this fixed rate is 0.48% per month, then our share at the end of the first year will have increased from 20% to 21.18% of the value of the property. And so on, as illustrated in the table above. The maximum our share can grow to will be fixed. In this case, our maximum share is 52% so your clients have a Protected Share of 48%.