HomePlus

The minimum lump sum is €50,000 with no maximum lump sum in theory as it depends on the value of your home. In practice, the maximum lump sum you can receive is 70% of the current market value of your home, which is then discounted depending on your age.

• If you’re in your early 60’s, then the discount on the lump sum is around 50%, as the provider expects their cash to be tied up in your home for quite a while.
• If you are in your 80’s though, you will get closer to the market value as your lump sum, as the provider doesn’t expect you or their investment to be in your house for as long.

In actual fact, the level of discount is set by the youngest resident on the deeds, as that is what will drive how long Home Plus will have to wait for the sale of your home.

Mary is 75 and has a house worth €700,000. Under the terms of the Home Plus home reversion, she is entitled to sell 70% of her home to Home Plus.

Her son John is looking to move house as the kids are getting bigger. Mary wants to help her son and decides to gift John €175,000. Mary sells 54% of her home to Home Plus to raise the €175,000 she needs to gift to John.

As the €175,000 is under the current parent/child CAT threshold amount of €335,000 there is no taxes involved and John can use the €175,000 plus a mortgage to buy a larger home.

To qualify for a home reversion ...

You must be:

• The registered owner(s) of the property.
• All owners must be sellers, i.e. sign the home reversion agreement.
• The youngest owner must be over 55.

The Property must be:

• Your main residence (and not used for any commercial purpose).
• Any outstanding mortgage must be cleared from the proceeds of the sale.
• Worth at least €120,000.

As part of the home reversion agreement you have the option to buy back the share you sell to Home Plus at the market rate at any time. This can make sense if for example you decide to downsize your home at any point.

Your estate also has first option to buy back the share at the market rate from Home Plus after your death if they wanted to keep the family home.

If the option is not exercised, the house will go for public sale with each party receiving their share of the proceeds on sale.

1. Release your equity in phases

If you are thinking about a home reversion, remember you don’t need to take it all out at once. By taking it out over time you can reduce the overall amount of discount to market value you receive.

There is no point in having cash from your home reversion sat in the bank not being used and earning no interest. So only take out what you need at each stage.

2. Talk to those who might be affected

If you’re thinking of equity release, it may make sense for you to talk to members of your family who may be affected. There is obviously no legal reason you have to discuss your decision with them, but it can save some heartache when your decision to take equity release comes to light later on down the track.

3. Get advice

Equity release is a big decision, and you should get advice and guidance through the process from a qualified financial advisor and a solicitor.

You will have to pay for a solicitor, with fees ranging from €1,200 to €2,500 depending on who you use. We recommend Colm O’Cochlain & Co who have a flat all in fee of €1,200 including VAT for equity releases with Home Plus, as they have the lowest fees, specialize in equity release arrangements, and operate nationwide. (Make sure to please quote 'Walsh Group' if you want to secure the best rate.)