Types of equity release

There are three FSA regulated ways of releasing equity from your property:


Standard Home Reversion Plans

>Retirement Plus Home Reversion Plans

Lifetime Mortgages

Here we look at the pros and cons of the Retirement Plus Property Plans. For peace of mind, choose a SHIP member provider for your equity release needs. To understand the features and risks of any equity release scheme, ask your financial adviser for a personalised illustration.

The Retirement Plus home reversion plans operate in a different way to standard home reversion plans

Retirement Plus offers a range of equity release options which are flexible and fair, for clients aged 65 or over, looking to raise equity from their property. The Retirement Plus Property Plans have no upfront discounting and enable you to raise large sums whilst still offering flexibility for future life changes. And, because their share of your property increases over a long period you continue to own your share of the property for longer – which means your estate can benefit. You also have the advantage of being able to sell your property or cancel the plan at any time should your circumstances change for better or for worse. Retirement Plus believes that equity release can be a very useful tool for retirement planning purposes and offers the following range of equity release home reversion plans:

Pros

  • No ongoing repayments to make, the reversion company makes all of its money when the property is sold
  • You know at the outset what share of your home (if not its value) you will be leaving to your family
  • You continue to share in any rise in the value of your property (unless you have sold its entire value)
  • The unique structure of the plans ensure your estate is not penalised should you die earlier than expected
  • You can take extra cash releases, depending on the amount you originally took
  • No cancellation penalties with these plans (you will have to pay an administration fee and the legal costs involved)
  • If you have a serious illness, you may be able to get a bigger payment

Cons

  • Properties they accept are flexible but must fit their plan criteria
  • Further releases are not guaranteed

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General information about financial services is available from the Financial Services Authority (FSA). The FSA is an independent watchdog set up by the government to regulate financial services and protect your rights. It provides free and independent information about equity release on its website at moneymadeclear

Retirement Plus is authorised and regulated by the Financial Services Authority.

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