Considering Equity Release - Some Questions Answered

With the Interest Only Mortgage there are no restrictions whatsoever. With the Home Reversion option, if you need to have a carer or family member living with you later on, they will have to sign a letter of no-tenancy.

Going forward, you are responsible for normal household insurance and making sure that the co-owner?s or the mortgage provider?s interest is noted on the policy. It is also expected that you maintain the property to the same standard and you let us know in writing if you are planning any major refurbishments. We do not contribute to the costs of any repairs or maintenance unless the structural fabric of the house is affected.

As part of the management agreement with the Home Reversion option we visit your home every two years. But each year we write to you to get a copy of your home insurance policy and to make sure you are still living at your home.

Yes, with the Home Reversion option you can be away from your home as often and as long as you wish, up to six months at a time. If you need to be away for longer than this, we are happy to accommodate you, once you let us know in writing beforehand. We just need to be confident that your home is secure while you are not living there. With the Interest Only Mortgage there are no restrictions whatsoever.

If you need long-term care only, for example for recuperation, which may extend beyond six months, we are happy to consider your situation with your doctor?s recommendation and advice. Again, we just like to be confident that your home is secure while you are not living there. With the Interest Only Mortgage there are no restrictions whatsoever.

With the Home Reversion Plan only, there are two Guarantees in place for unusual and exceptional circumstances. Our Inheritance Protection Guarantee gives an additional cash payment to you or your beneficiaries if the plan ends within four years. This is only available to those aged between 65 and 75 years at the start at the plan. Our House Price Inflation Guarantee gives an additional payment if there is an exceptional growth in house prices over the course of the plan.

Yes, with both equity release options you can raise additional cash when you wish. However, you can?t borrow from a new provider.

With the Home Reversion Plan - If you need more money later on you can sell further value shares at anytime, provided that you never sell more than the maximum allowed for the value of your home. The same costs and terms and conditions apply as previously. See Home Reversion Plan for details: Home Reversion Plan details

With the Interest Only Mortgage you can top up your loan anytime you wish, provided the total loan is never more than 30% of the value of your home and you meet the minimum annual income requirements. The minimum amount you can take as an additional top up is ?10,000. The costs for a top up are:

- A 0.5 % arrangement fee up to a maximum of ?500 payable to Start Mortgages Ltd as at 26th August 2008

- And an administration fee of ?500 which is non refundable payable to Sixty Plus Finance as at 26th August 2008

All outstanding loans and mortgages must be cleared before completing either equity release options with Sixty Plus Finance.

Yes, if you decide to sell your home, with both equity release schemes you have two options:

a) You can end your equity release plan by using the proceeds to give Sixty Plus Finance the value of their share if you have a Home Reversion Plan, or to repay the loan if you have an Interest Only Mortgage

b) Or, with a new property you can continue the home reversion, where Sixty Plus Finance own the same value share going forward*. Similarly, you can transfer a loan to a new home, provided the loan is still no higher than 30% of the value of the new property.

*With the Home Reversion Plan only, all costs from the sale and purchase of both properties are shared according to ownership.

With the Home Reversion Plan: Yes, any money you receive is tax free, providing the property you are using for equity release is your principal private residence. If not, you should check your situation with a tax consultant, as capital gains tax may apply.

With the Interest Only Mortgage: You are only borrowing money so no capital gains tax applies.

Possibly, but only if you receive a non-contributory state pension, which is means tested. You should then check your situation with your local welfare office, as the cash sum you generate may affect your pension.

The Home Reversion Plan is managed under a standard Law Society Conveyancing Contract, with special conditions to cover for example your right to live in your home for life and the registration of Sixty Plus Finance or a nominated investor as a co-owner on the title deeds.

The Interest Only Mortgage is a standard mortgage and is governed by the Financial Regulator.

With the Home Reversion Plan, your solicitor holds the deeds. However, with the Interest Only Mortgage option, as with all mortgages, the provider holds the deeds.

With both equity release options, your family or solicitor will let us know that you have both passed away but nothing can happen with the property until probate is granted. This gives your beneficiaries or family ample time to consider their options.

With the Home Reversion Option, as your solicitor holds your title deeds, he will handle the sale of your house together with your executor. If your beneficiaries decide not to buy the value share you originally sold to Sixty Plus Finance, the house is then sold on the open market and the proceeds are split proportionally according to ownership.

With the Interest Only Mortgage, until your estate is settled, if your beneficiaries do not continue the interest repayments on your behalf, the interest rate will increase by 1% on all outstanding arrears until the loan is repaid.