Setting up an equity release plan involves certain costs that must be considered when applying for a plan. Different providers charge different amounts as fees, so the actual amount will vary as per the chosen plan, but following is the list of expenses involved in setting up a home reversion application.
Arrangement Fee to the Provider for the Product: Some home reversion providers charge an arrangement fee at the time that you apply for the plan. Not all home reversion providers charge this, however. For instance, Hodge Lifetime shared growth plan involves no additional application or arrangement fee, as these costs are included in the offer made to you.
Arrangement costs cover the expenses of processing your application and are payable even if the plan should fall through for some reason.
Valuation Fees: Setting up a home reversion plan involves the valuation of your property. This is an integral part of the home reversion process, as the valuation of the property is a key factor that the provider uses in deciding how much you can receive.
Most home reversion providers offer to carry out a valuation of the property, but it is advisable to carry out an independent valuation by a trusted and impartial party.
The cost of valuation generally depends on the value of the property. This cost must be met by the customer.
Legal Fees: It is vital that the home reversion contract be reviewed by an independent solicitor. An independent solicitor can review the offer made by the provider and give you appropriate advice about the suitability of the plan. The fees for independent legal advice must be met by the customer.
Maintenance Costs: even though home reversion involves transfer of full or part ownership of the property, all expenses related to the maintenance and up keep of the property need to be met by the customer. The home reversion provider agrees to the lease providing the house is maintained to a certain standard, so the costs for this should be considered while setting up a home reversion plan.
Adviser Fees: equity release is not a small matter. It has implications for your future as well as for any inheritance you may wish to leave behind. As such, it is necessary to seek independent financial advice while applying for and setting up an equity release plan. Financial advisers charge a fee for their services, and this should be considered as part of the set up costs for a home reversion plan.
Tags:Equity Release Plan, Hodge Lifetime, Hodge Lifetime Shared Growth Plan, Home Reversion, Home Reversion Application, Home Reversion Contract, Home Reversion Plan, Home Reversion Process, Home Reversion Providers, Independent Financial Advice, Independent Legal Advice