Just Retirement entered the equity release market over seven years ago. They provide roll-up lifetime mortgages with drawdown facilities if necessary. Clients using Just Retirement plans will benefit from Just Retirement’s customer service, experience in the industry, and their speedy completion processes. The Just Retirement roll-up lifetime mortgage provides a tax free lump sum of cash to the client at inception. In addition, there are cash reserve facilities that turn this loan into a drawdown mortgage.
How the Just Retirement Drawdown Plan Works
A benefit of the Just Retirement roll-up plan is the drawdown facility attachment. The overall amount they can borrow & allocated to this cash reserve is based upon a maximum loan-to-value calculation which uses data such as the valuation of the property & the age of the youngest person on the deeds.
Clients can choose to take a lower initial sum of cash from this overall facility. Therefore, if the total facility was £90,000, and they required £50,000 immediately, they could leave the remaining £40,000 in the cash reserve fund for future use. This can be taken at any time in the future and there is no charge whilst it is sat there in its unused state.
Interest is fixed for life on the first lump sum. Any secondary withdrawals may be subject to a different fixed APR, but it will also then be fixed for life. Interest only compounds onto the principle balance that is used and not the maximum funds available in the cash reserve account. Being a lifetime mortgage, Just Retirement Roll-Up products require no repayment until the homeowner dies or moves into long term care.
Drawdown Criteria of Lifetime Mortgage Plans
Plans are available for homeowners aged 60 or older. There is no maximum age for the Just Retirement scheme. The property has to be located in the UK, be the main residence, and have standard construction to qualify. A minimum of £70,000 property value is required to qualify.
The minimum and maximum drawdown amounts are £10,000 and £600,000 respectively. The property value must support the amount awarded as a lump sum and in the drawdown account. This is determined by age, property value and potential accrual of interest. If clients are located in Scotland, Wales, or Northern Ireland the maximum funds available are only £250,000.
Any withdrawal after the initial lump sum must meet the minimum requirement of £2,000. No additional approval is required and no further admin costs are incurred.
Enhanced Features for the Drawdown Mortgage
There are restrictions on the maximum cash facility meaning the reserve for England is lower than 3 times the advance or a maximum of £200,000. While the maximum can reach up to £600,000, only 3 times the beginning advance or £200,000 can be in the facility account at a time.
Repayment is set at the time of death or move to a care facility at which time the loan must be paid in full including any interest. Just Retirement does not offer flexible repayment options, although it can accept partial repayments, subject to any potential early repayment charge. If the loan is paid early it is subject to the potential early repayment fee also.
Incentives for the Just Retirement Equity Release
A free unlimited valuation and potentially reduced APR are all incentives.