Just Retirement Lump Sum Plus is one of several financial based retirement products the company provides consumers. Just Retirement has more than seven years’ experience in the industry offering lifetime mortgages and equity release products. The lump sum plus is an option for homeowners who are cash poor, but property rich seeking to increase their available funds for retirement.
The Lump Sum Plus has two options: standard and enhanced. Homeowners can take advantage of a large maximum tax-free cash sum based on certain criteria.
Criteria of the Just Retirement Lump Sum Plus Option
Property value is set at a minimum £70,000 in which a minimum of £10,000 must be taken. The maximum amount is based on age, qualifications of health, and property value. The property must be in Wales, England or Scotland.
Interest rates are fixed on the initial cash withdrawal and based on age and property value. The minimum age of the youngest homeowner, when applying jointly is 60. Any single applicant must also be 60 or older. Just Retirement does not list a maximum age.
The standard lump sum plus provides a capital sum in a roll-up lifetime mortgage. This sum is a little larger than basic roll-up plans.
The enhanced version is a larger maximum capital sum than the standard based on ill-health criteria as assessed by underwriters. This will be subject to the analysis of a Just Retirement Health & Lifestyle questionnaire. Should any illnesses that are considered to shorten life expectancy are declared, such as diabetes, heart attack, cancer etc. then Just Retirement can increase the maximum equity release lump sum. Additionally, to reflect this extra borrowing Just Retirement can increase the interest rate applicable accordingly.
As a lump sum plan the standard option applies. It provides a larger sum than is otherwise offered to ensure homeowners have the necessary funds for retirement. If there are severe health problems there is a potential for an even larger maximum lump sum.
When calculating the capital sum, Equity Release Council rules of no negative equity are taken into account. A no negative equity guarantee protects homeowners from their loan reaching over 100% of the home value during the life of the loan.
Unique Features of this Lifetime Mortgage
The Lump Sum Plus can be turned into a drawdown mortgage in which further funds can be made available. If homeowners take advantage of this option the funds are subject to interest rates of that time and not the original fixed rate for the initial sum taken.
This is a roll-up mortgage where the interest rate accrues overtime onto the capital sum. Just Retirement will accept partial repayments during the life of the loan subject a minimum of £500. However, this would be subject to potential gilt based early repayment charges.
Both the interest and principle balance are due at death, move to an assisted living centre, or when the home is sold. Early repayment charges will apply.
Just Retirement Equity Release Incentives
Just Retirement Lump Sum Plus incentive is a free valuation.