Shared Growth Option
Summary of Current Charges
Application Fee:
Hodge Lifetime does not charge an application fee. The set up costs are included in the offer made.
Valuation Fees:
At application stage, your client will be asked to pay a fee towards a Report and Valuation in respect of the property. The amount they have to pay for this depends on the value of the property at the time of application. Please ask us for a copy of our current fee scales.
Costs for re-valuation in respect of any future releases will also be your clients responsibility. Once a Report and Valuation has been completed, there will be no refund of the above fee, even if the plan does not proceed.
Legal Fees:
Legal fees and costs charged by the clients solicitor are their responsibility even if the plan does not complete for any reason.
Other Costs:
If it should be necessary for Hodge Lifetime to take over the sale of the property due to any breach of the terms of the plan, any costs involved will be charged to the planholder.
Other Considerations:
The future value of your clients estate will be reduced by Hodge Lifetime's agreed share of the proceeds when the property is eventually sold. We will be entitled to this share even if the client dies (or the survivor of joint applicants dies) during the early years of the plan.
We strongly recommend that your client discusses their intention with their family or any beneficiaries whose inheritance may be affected if they take out a plan.
Property values:
Clients will benefit or otherwise from any future changes in the value of the percentage they still own.
Past performance of property prices should not be taken as guide to the future. In addition, regional house price variations should be considered.
Risk Factors:
Property valuation is a matter of judgement by a qualified surveyor. Entitlement to any benefits your client receives, such as Income Support or Council Tax Rebate may be affected by taking out this plan.
Commitment:
A property valuation will be carried out on your clients home at their expense.
With this scheme they will be responsible for their legal fees and charges.
Your client will be responsible for maintaining the property in a good state of repair.
Hodge Lifetime must agree any plans to make structural alterations to the property before changes are made.
No one else should live at the property except for the planholder(s) but special consideration may be given in certain circumstances. The client must advise Hodge Lifetime in advance if they anticipate anyone moving in with them.
The client must advise Hodge Lifetime in writing if they anticipate leaving the property unattended on any occasion, for an extended period, (eg. long stay holiday or a term of hospital care).
Participation in this scheme should be viewed as long term.
If your client enters into this plan they will not be able to use their home as security to raise further funds from any other provider.
Next: Hogde Life Annuity Products
79% of advisers still confident despite the withdrawal of some lenders and advisers from the market. Read more...
As large providers leave the market, the importance of the IFA has never been more apparent Read more...
Hodge Lifetime, the UK’s longest established equity release provider, today announces a change to its equity release product offering which will support equity release customers in 2010. Read more...
Find out more about
Hodge Lifetime by calling our
Broker Support Unit on:
0800 731 4076