The Just Retirement version of the Enhanced lifetime mortgage is slowly becoming more popular within the overall equity release marketplace. These impaired equity release products often offer more attractive options, features, and rates for those homeowners who struggle with a variety of different health and lifestyle conditions. Because it is assumed that homeowners with the impaired health conditions may have shortened life spans, lenders are able to increase the amount of money borrowed under the premise that the home will be sold sooner than if the homeowner was healthy.
For those homeowners who do qualify for one of the enhanced schemes, the can benefit from having better terms to their lifetime mortgage scheme and can use that extra cash they receive to do whatever they want during their retirement years. Should the impaired equity release planholder still live to the normal life expectancy, the enhanced provider will still provide the no negative equity guarantee, hence never owing more than the house is worth.
Just Retirement offers a product that can help homeowners maximize the amount of money they can release from their home. The Just Retirement Lump Sum Plus Lifetime Mortgage offers standard loan-to-value terms that are typically higher than those that apply to the lender’s roll-up plan. With this particular product, Just Retirement takes into account all of the homeowner’s health conditions and lifestyle conditions in an effort to allow for higher borrowing on potentially enhanced LTV terms. This extends further than the other enhanced mortgage providers as they ask extra questions, thus enabling further impairments to be considered by the underwriting team.
In order to qualify for the Lump Sum Plus Lifetime Mortgage, borrowers must be at least 60 years old and must own their own home in Scotland, Wales, or England. Furthermore, the home must have a minimum valuation of at least £70,000. Each borrower will be allowed to borrow different levels of equity and this amount is determined on a case-specific basis. The amount is determined by taking into account a number of different factors. These factors include the health and lifestyle of the homeowner as well as the value and age of the property. The minimum amount that can be borrowed using this scheme is £10,000. The maximum amount available is subject to an overriding maximum of £250,000 for properties in Scotland and Wales and £600,000 for properties in England.
Based on all of these factors, the homeowner will receive a lump sum payment. Once that payment has been received, the homeowner will be charged interest, which compounds annually thereafter for life. The plan is repaid upon sale of the property which would be on last death or moving into long term care. The remaining balance upon repayment to Just Retirement is then distributed amongst the beneficiaries in accordance with the Last Will & Testament.
This product works best for those consumers who do suffer from health or lifestyle conditions that may shorten their life span. The extra money received can help homeowners best enjoy their retirement years & hopefully alleviate there ills.