Newlife was formed in 2003 and started as one of the first lenders to exclusively provide equity release products. This lender has won several awards and continues to provide successful equity release products to retirees.
The Home Reversion Plan offered by Newlife allows you to transfer a portion, or all, of your home in exchange for a tax free lump sum. You are allowed to continue living in your property, without paying rent, for the rest of your life. Newlife’s Home Reversion plan appeals to consumers in a variety of different situations. It is best suited for those who need a cash sum during retirement or for those who would like to still benefit from any change in the value of the proportion of the property not sold off. This product also works for those who do not want to make any ongoing payments or may want further cash releases.
Newlife’s home reversion plans are available starting at age 65 all the way up to age 90. The minimum release allowed is £25,000 and you must have a home that is valued at a minimum of £75,000. The product is available in Wales, mainland Scotland, and England.
Newlife currently offers two different home reversion plans. Choosing which one works best for you will depend on your particular needs.
The two plans offered by Newlife:
1. Optimum. With this option, you must release at least £25,000. The maximum equity release release under this option is £250,000. The actual amount allowed for you will depend on your property value, age, single or joint status, and the proportion sold. The minimum property value for this plan is £75,000 and the maximum is £1,000,000. The biggest difference with this plan is it is based on selling 100% of the property value to the lender. That means that you essentially forfeit ownership of the property but are still able to live in it, rent free, until you either pass away or enter into permanent long term care.
2. Options. This is the second option offered by Newlife. Under this plan, you are able to sell anywhere from 25%-95% of your property value, meaning that you are still able to retain some of your ownership. Therefore, you can gauge your spending plans accordingly & not necessarily have to take the maximum home reversion release from day 1.
The single biggest difference between the two plans is the amount of equity you are allowed to sell off. Determining which plan is right for you will depend on how much cash you need during retirement along with whether or not you hope to leave behind some kind of inheritance to your beneficiaries. Always get independent equity release advice before making any commitment on any lifetime mortgage or home reversion plans.
