Frequently Asked Questions
We can't answer all your questions here. But these are the most common things people ask us. If there's anything else you'd like to know about the equity release Property Plan which may help you with your retirement planning, then please talk to your financial adviser.
Choose from these sections
It's always your home
What happens if I live longer than expected?
Nothing. If you have released the maximum sum the maximum share we can possibly own is 99.90% which means you always have the reassurance that you can stay in your home as long as you live. If you have not released the maximum equity available to you and so have a Protected Share, the Retirement Plus share can never exceed the agreed maximum level.
What happens if I go into long-term care?
As long as care home fees are paid for and we are happy that the property is well maintained, insured and secure, there is no need to sell. However, our share will continue to increase until it reaches the agreed maximum level.
Who is responsible for maintaining, insuring and keeping the property secure if it is empty?
The responsibility remains with you.
What if I want to move?
The Property Plan can be transferred to another property as long as it meets our criteria. If the new property has a lower value, then we ask for a payment to be made to keep our share of the value of your new property at the same level it was on the original one.
Can someone else live in my house?
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 your death they will have to vacate the property.
Can I let my home?
We will consider this option after speaking to you.
What happens to the property when I die?
The property is sold and your share will be paid to your estate net of sale costs.
How soon after my death do my possessions have to be removed?
We will work out a suitable timeframe with the executors of your estate and your beneficiaries.
How will it affect my finances?
Taking out a Property Plan may affect your eligibility for means-tested benefits or tax status, which is why it is important that you speak to your financial adviser
What happens in the case of negative equity?
When your Property Plan ends, if there are costs which cannot be met from your share of the sale proceeds, then we will pay them. If you have retained a Protected Share, you will pay the costs of sale of that share.
What happens if property prices rise?
Our shares in the Property Plan would be applied to the increased value of the property. Remember that our share increases over time and may reach its maximum level. If you have retained a part of the value of the property as a Protected Share in the Property Plan then that could be used by you in the future to apply for a further lump sum.
Are there any penalties if I wish to cancel the Property Plan?
There are no cancellation penalties payable to us. However, you may incur some costs if the property value has fallen below the value when you took the Property Plan out. This will be dependent on the product you have selected and will be detailed in your Key Facts Illustration.
What if I cancel the Property Plan early?
If you wish to cancel the Property Plan, the property will be re-valued at your cost. You will need to pay us the value of our current share of the property and a cancellation fee for administration. Please don't forget that you will also have to pay the legal, Land Registry and other costs and any taxes that arise - these may include any Stamp Duty Land Tax at the prevalent rate - which may be due on the amount you pay us.