Newlife formed to provide consumers with top quality equity release products including lifetime mortgages and home reversion plans. The company launched in 2003. Rather than selling their products to individuals, their products are provided through authorised and approved lenders. Lenders are chosen based on their commitment and dedication to offering high quality retirement products.
Summary of the New Life Home Reversion Plan
The Newlife Home Reversion Plan is set up for individuals selling part or all of their home to provide guarantees for their beneficiaries. Any person who wants to sell a part or their entire home in return for a tax-free cash sum can take advantage of this plan.
Homeowners remain in their house rent-free for the rest of their life or until they move to an assisted living facility. Applicants must be a minimum of 65 years old and a maximum of 90. Joint applicants still require the youngest owner to be 65 years of age. The plan is in effect until the last of the applicants die or move to a care centre.
Product Criteria of the New Life Home Reversion Plan
Newlife has an Optimum Home Reversion plan or Options plan. The Optimum plan provides a minimum release of £25,000 with a maximum release of £250,000 based on the property value, portion of property sold, and age of the applicant(s). The maximum possible amount requires 100% of the home to be sold or 99% in Scotland. The percentage of funds provided is calculated based on current value less a percentage for the investment provider.
The Options Plan provides the same minimum release or 25% of the home value, whichever is the lesser amount. The maximum release is set at the same cap. The plan requires between 25% and 95% of the property value to be sold.
There is an application fee and administrative fee of £125. This also includes the valuation fee. Arrangement fees are £695 in England and Wales, and £895 in Scotland.
Newlife plans are Equity Release Council approved.
The property is sold on the open market at the time of death or when the applicant(s) move to an assisted living centre. Newlife will recover the sale value based on their share and provide any leftover funds to the beneficiaries or surviving partner.
Newlife Equity Release Incentives
No further incentives are offered with the Newlife Mortgages Home Reversion Plan.