Open Option Property Plans are available from the age of 65. This
calculator works for any gender and age, or combination of genders and ages
for up to two persons, from 65 to age 100. The results will be shown as the
borrower's remaining percentage equity value in the property, depending on
the amount of cash that has been taken, so that you can consider what effect
this might have on you and your beneficiaries. Remember that house prices
can go down as well as up, particularly in the short term, and that future
increases in value are not guaranteed. Notwithstanding, the lifetime guarantee
means that negative equity will never be charged to your estate. Alternative
Home Reversion Plans offering income instead of capital, or both, are also
available. Please note that not all lenders will necessarily offer as much
as the table suggests or at the same minimum age.
Think carefully about this information and the results you obtain using the
calculator before you decide whether or not to go ahead. Use the links below
to compare the results with those obtained using the traditional Home Reversion
Plan and Lifetime Mortgage calculators before deciding. You should also use
the link at the foot of this page to the comparison tool, where you can use
both calculators together and see and compare the differences side by side.
Remember also that alternative Home Reversion Plans offering income instead
of capital, or both, are available as are impaired health plans offering slightly
higher amounts.
If you are at all unsure about which Home Reversion Plan is right for you,
you should ask your independent adviser to make a recommendation and to provide
you with a written illustration. The Mortgage Shop is authorised to arrange
and advise on Home Reversion Plans.
The figures given rely on your own best estimates of your property value,
and future inflation, which may or may not prove to be accurate, and should
only be taken as an indication of what might be the results if you were correct
in your assessments. They should not be used on their own as a firm basis
for making the decision to sell all or part of your home.
The calculation of IHT is not a prime function of this calculator and the
potential effect on IHT shown assumes that there is no additional relief available
arising from transfers of unused nil rate bands. You should not take out a
Home Reversion Plan solely for IHT reasons or without independent advice and
you should discuss it with your family and consider other alternatives before
making a decision.
You should also consider the effect taking out a Home Reversion Plan may have
on any State Benefits you are either receiving or that you may become entitled
to in the future. These can include Grants for Repairs, income in the form
of Guaranteed and Savings Pension Credits, and payment of your Council Tax.
If you are in any doubt, you should ask an independent financial adviser for
advice.
The Mortgage Shop accepts no responsibility for any decisions you may make
as a result of using this calculator, unless you have also sought and been
given written advice by us prior to making any such decisions.
Home reversion Plans became regulated by the FSA, in the same way that Lifetime
Mortgages are, on 6th April 2007. If you wish to compare the differences between
Lifetime Mortgages and Home Reversion Schemes, click on the link below.
This is about Home Reversion Plans. To understand the features and
risks, ask for a personalised illustration
