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Our Services
What types of scheme are there? There are two forms of Equity Release |
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Lifetime Mortgages
Interest Only
For interest only mortgages you pay the interest on a monthly basis. the mortgage is redeemed when the house is sold (downsizing or entering a care home) or if you die.
Interest rates can be fixed or variable. Some plans, called Home Income Plans provide an income from the money released by purchasing an annuity.
Rolled Up Interest
A rolled up interest loan is where you pay no interest on the mortgage taken out. Again when the property is sold the mortgage is repaid. The amount you can borrow can grow quickly especially if you take out a lump sum at the start.
Some lifetime mortgages can include a shared appreciation element. this means you agree with the lender that they can have a share in any increase in the value of the home when it is sold. |
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Home Reversion Schemes
With a reversion scheme you sell part, or all, of the property to a reversion company, bank or insurance company. The price is usually between 20% and 50% of the current value depending on age. You will normally be paid less than the value of your home, typically between 35% and 60% because they cannot resell the property until death or entry into a care home. The house will revert back to the lender if you go into a care home.
The reversion company provides an income and / or a lump sum and a guarantee that you stay in the property completely rent free for as long as you live or until the property is old.
The minimum age for reversion schemes is usually higher than for lifetime mortgages.
One of the main differences between reversion schemes and lifetime mortgages is that with reversion schemes any increase in the value of the house will go in full or part to the reversion company. With Lifetime Mortgages a rise in house prices is retained by the owner. |
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Premier Equity Release only operates with lenders who can guarantee that the interest rate payable will not rise above an agreed level during the lifetime of the Equity Release Mortgage Plan.
Your Equity Release Mortgage Plan should be arranged with a lender that has a ‘negative equity guarantee’; this means the lender guarantees that you or your estate will not have to make up the shortfall in the event that the property is sold for less than the amount of the outstanding loan.
This is a very valuable guarantee and Premier Equity Release only operates with lenders that provide this safeguard for you and your beneficiaries. In addition many lenders now offer fixed or capped rate equity release mortgage plans which stipulate that you will never pay above a certain interest rate during the life of you Equity Release Mortgage Plan regardless of what happens to interest rates generally.
A FEE OF £195 PAYABLE AT THE OUTSET AND A FURTHER FEE OF UP TO 2.5% OF THE LOAN PAYABLE WHEN YOU APPLY FOR AN EQUITY RELEASE PRODUCT, OUR TYPICAL FEE IS £600 |
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Safe Home Income Plans (SHIP) guarantee
SHIP is a company supported by the leading providers of home income and equity release plans. It was launched in 1991 and is dedicated entirely to the protection of plan holders and provision of safe home income and equity release plans.
All participating companies are pledged to the SHIP code of practice.
- The members of SHIP agree to provide fair, simple and complete presentation of their plans. The benefits, obligations, variables and limitations must clearly be set out in their literature, including all costs which the applicant has to bear in setting up the plan, the position on moving, the tax situation and the effect of changes in house values.
- The client's legal work will always be performed by the solicitor of his or her choice. In all cases, prior to the completion of the plan the solicitor will be required to sign a certificate to the effect that the scheme has been explained to the client.
- The SHIP certificate will clearly state the main cost to the householder's assets and estate e.g. how the loan amount will change, or whether part or all the property is being sold.
- All SHIP plans carry a "no negative equity" guarantee i.e. you will never owe more than the value of your home.
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Premier Equity Release is a domain name for website use of Ziifa Home Loans which is a trading style of Ziifa Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Services Authority |
Copyright © 2008 Equityrelease.net |
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Ziifa Home Loans
Orchard House51-67 Commercial Road, Southampton Hampshire SO151GG
T: 023 8033 4111
M: 07957 211 422
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