Newlife is one of the three providers of home reversion plans currently available on the market. Newlife’s home reversion plan offers two options – Newlife Optimum Home Reversion Plan and Newlife Options Home Reversion Plan. The plan is designed for people who want to sell a portion of or their entire home in exchange for a cash lump sum, while continuing to live in the house, rent free, for life.
The minimum applicant age for the Newlife Home Reversion Plan is 65 years, and the maximum age is 90 years. In case of joint applicants, the minimum age of the youngest applicant must be 65 years or over. The plan is valid until the last of the applicants has died or moved into long term care, at which point the house is sold.
The Optimum Home Reversion Plan allows a minimum release of £25,000 and a maximum release of £250,000. As with any other home reversion plan, the exact amount that can be released by the applicant depends on the age of the applicant, the valuation of the property and the percentage that is sold. The optimum plan is designed for those who want to release the maximum possible equity, and so 100% of the value of the property is sold in this plan (99.9% in Scotland).
The Options Plan is designed for those who want to retain a share in ownership. It allows a minimum of either £25,000 or release based on the sale of 25% of the value, whichever is lesser, and a maximum release of £250,000. The plan allows for the sale of between 25% and 95% of the property value, making it suitable for a wide range of customers.
Irrespective of the plan you choose, home reversion customers retain the right to live in their house, rent free, for as long as they live, or until they move into permanent long term care. At this point, the property is sold, and Newlife will recover their share of the sale value based on their share of ownership. Newlife Home Reversion Plans are ERC approved and come with a no negative guarantee.
Newlife charges an application fee and administrative fee of £125 which includes a valuation fee. Arrangement fees of £695 in England and Wales and £895 in Scotland must be paid along with a telegraphic transfer fee of £25 upon completion.
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