Sound bites
The information on this page is intended for use solely by members of the media and may be reproduced or republished stating Key Retirement Solutions as the author. Customers should not use this information to form an opinion about equity release in relation to their individual requirements.
Key Retirement Solutions is the UK’s leading independent equity release specialist. In 2006 it conducted 25% of all SHIP (Safe Home Income Plans) intermediary equity release business in the UK.
KRS is a leading member of SHIP, the equity release industry body, and has campaigned rigorously and effectively with SHIP for regulation across the equity release sector. This campaign was rewarded by the Governments confirmation that they will regulate home reversion plans, which will bring them in line with lifetime mortgage regulation.
Key’s commitment to excellent service has been recognised by the financial services industry though a series of prestigious awards:
- Financial Adviser Equity Release IFA/Whole of Market Adviser of the Year 2006
- Financial Adviser Equity Release IFA (Firm) of the Year in 2004, 2005 and 2006
- Mortgage Introducer - Best Equity Release Mortgage Broker in 2005 and 2006
- Mortgage Strategy - Best Mortgage Broker, Specialist Lending (2004) and Best Equity Release Mortgage Broker (2005 and 2006)
- Mortgage Solutions - Best Financial Adviser (Home Reversion) and Best Financial Adviser (Lifetime Mortgages) in 2005
- What Mortgage - Best Equity Release Mortgage Broker in 2006.
Lifetime mortgage vs. Reversion Plans
Reversion Plans. A percentage of the homeowner’s property is sold to a Reversion Company in exchange for a cash lump sum. However, the resident retains a lifetime tenancy and the freedom to move home whenever they choose. The money received is available to spend as they choose.
Reversion plans can usually realise a greater level of equity than mortgage plans; therefore the amount of money released tends to be higher. Inheritance can be guaranteed with these schemes, since a percentage of the property is sold and both parties share in any increase in value. Upon the sale of the property, any gain is divided according to the percentage of the property sold.
Lifetime Mortgage Plans. A percentage of the value of the property is released with a loan that is secured against the value of the property. Homeowners receive a tax-free cash lump sum but are not required to make any interest payments throughout the term of the loan. Instead interest (at a fixed or variable rate) is compounded and is repaid with the loan from the final sale of the property.