Just Retirement has become well known for their annuity based business which effectively funds the equity release products. They have built a strong reputation in the equity release scheme market and has quickly gained popularity since entering the market in 2004. This lender offers several different retirement solutions, including a variety of different equity release plans and enhanced annuities.
The Lump Sum Plus Lifetime Mortgage offered by Just Retirement offers an increased lump sum for those retirees who are looking to maximize the release of their equity via a cash payment. This lump sum is available through two different channels, depending on your particular circumstance and preference:
1. Standard Loan-to-Value. Through this plan in the Lump Sum Plus Lifetime Mortgage you would most likely be able to receive a larger lump sum payment than you would expect with the typical Roll-Up Lifetime Mortgage. You may find that that with this option you are given a higher interest rate.
2. Enhanced Loan-to-Value. This plan option offers an alternative for those who have certain health conditions. In this option, you would need to answer a number of questions related to your health and any health conditions or ailments from which you suffer. Your lifestyle choices may also be included in this series of questions. If through this assessment, it is determined that you have a shortened life expectancy, you may be deemed eligible for a higher pay-out via cash lump sum.
The interest on the Just Retirement Lump Sum Plus Lifetime Mortgage is fixed starting at the time of the loan and is fixed for the life of the loan meaning that it will not change, even if interest rates overall fluctuate during the time period of your loan. The interest you will accrue will be charged on the lump sum payment you receive. This interest will accumulate on a compound basis and will need to be repaid upon the sale of the home, which will take place either when you pass away or when you move into permanent long term care. Regardless of the plan option you choose, you will not be required to make any repayments on the money you borrow.
You must be at least 60 years old to qualify for this plan and you must have a property that has a minimum valuation of £70,000. Because this plan operates differently from the Roll-Up Lifetime mortgage, the minimum loan amount is £10,000. This plan comes with the Equity Release Council’s code of conduct option which means there must be a no-negative equity guarantee which means that your estate will never be left with a negative balance, regardless of the property value of your home when it is eventually sold.