Later Life

Mortgages

For Lifetime Mortgages, you can expect a period of six to eight weeks from application to receipt of funds for a standard case. Home Reversion may take longer due to the transfer of title.

Our advice process usually takes place over two meetings. The first is a fact-finding meeting for your adviser to understand your situation and objectives, and to discuss alternatives (90 minutes). The second is a presentation meeting to go through the recommended plan in full (60 minutes) before you make any decisions. The features and risks, including charges, will be detailed in your personalised plan illustration.

Plan-specific product fees can typically be up to £995. Although, many are available fee-free and usually include a property valuation.

At Henry Dannell, an initial no-obligation, 30-minute consultation is complimentary. Should you wish to proceed, we charge an advice fee of £1,295 payable upon the completion of your mortgage.

Our advice fee is a fee for life, meaning that if life changes and you have exhausted your available release, our Later Life advice will be available to you again at any time, with no additional advice fee payable should you wish to release additional funds or remortgage.

Independent legal advice will also be required and fees may vary. However, these fees will typically be in the region of £800.

We do not offer independent legal advice, but we are able to facilitate a referral to a specialist.

Both types of plans will consider leasehold properties, but lending criteria for these can be more limited. The plan may require a minimum unexpired lease, with a management company in place. Funds can be used to extend the lease and there may be caps on the Service Charge and Ground Rent.

Assuming your new property meets your lender’s criteria, your loan-to-value limit would be reassessed and a penalty-free partial repayment may be required if you are downsizing and wish to port your loan.

If you would like to increase the amount of equity released (a Further Advance or Additional Borrowing), you would normally have to apply to your existing lender, as they hold the first and only charge they allow on your property. A further release would be subject to prevailing rates, lending criteria and available equity. An adviser could also compare the cost for a full remortgage to include the additional borrowing.

All members of the Equity Release Council are only able to inform you of products on the basis that they meet all standards outlined below:

1. For Lifetime Mortgages, interest rates must be fixed or, if they are variable, there must be a “cap” (upper limit), which is fixed for the entire term of the loan.
2. You must have the right to remain in your property for life, or until you need to move into long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract.
3. You have the right to move to another property, subject to the new property being acceptable to your product provider as continuing security for your loan.
4. The product must have a “no negative equity guarantee”. This means that when your property is sold, and agent and solicitor fees have been paid (even if the amount left is not enough to repay the outstanding loan to your provider), neither you nor your estate will be liable to pay any more.
5. All customers taking out new plans which meet the Equity Release Council standards must have the right to make penalty-free payments, subject to lending criteria.