The Lump Sum Plus Lifetime Mortgage offered by Just Retirement is tailor made for those homeowners who are looking to maximize the amount of cash they can receive from the equity saved up in their home.
In order to qualify for the Lump Sum Plus, homeowners must:
• Be at least 60 years old
• Own a property with a minimum valuation of £70,000
• Located in England, Wales & mainland Scotland
• Be prepared to release at least £10,000
There are a number of features that make this product unique. Some of them are highlighted here:
• No monthly payments. The Lump Sum Plus does not require that any monthly or regular payments be made on the loan balance.
• Fixed Interest Rate. The interest rate on the amount borrowed is fixed at the time of the loan. That means that the rate can never change, even if the interest rates fluctuate in the future. Interest on this loan does accumulate on a compound basis.
• Two loan-to-value tiers. With this product, there are two tiers available:
1. Standard. The standard LTV gives clients in good health a larger lump sum payment, but usually at a higher interest rate than the Just retirement drawdown plan.
2. Enhanced. This option applies to those homeowners who may have severe medical conditions or who partake in lifestyle choices that may shorten their lifetime. For these homeowners, the enhanced version allows for a larger equity release.
Maximum loan-to-value’s (LTV’s) on the product range from 24.5% to 52% and depend on several factors including health and lifestyle conditions, property value, and the age of the homeowner. The original loan amount, along with any and all accrued interest, is due when the home is sold. This sale typically takes place when the homeowner has either entered into permanent long term care or has passed away.
Just Retirement equity release schemes do offer a ‘no negative equity’ provision with their products. This means that if the home is sold for less than the amount owed on the loan, Just Retirement will not hold the estate in the negative equity situation, provided the home was sold for a reasonable price.
The Lump Sum Plus Lifetime Mortgage is a great option for those homeowners who are looking to maximize the amount of money they can receive from the equity in their home. With no monthly repayments required, homeowners can enjoy retirement to the fullest without worry about paying the loan back to the lender.