With a Home Reversion Plan (equity release without a loan) tailored to your personal needs you can release the equity in your home and start living.
Home Reversion Plans to suit your individual needs. This plan offers a lump sum in return for purchasing a share in your home.
Home Plus are regulated by the Central Bank of Ireland and have been offering Equity Release products in Ireland for over a decade.
Equity release can be a good way to unlock money tied up in your home if you are over 55. You can use the cash for anything you’d like from a holiday to helping the kids get on the property ladder.
Home Plus are the only provider of equity release home reversion products for people over 55 in Ireland, but are they the right choice for you?
Equity Release comes in two options …
Lifetime Loan – You get a tax free loan which you pay off plus interest when you sell after moving out or dying.
Home Reversion – You get a tax free lump sum for selling a portion of your home and are able to continue living there.
If you want make sure you will have equity left in your home when you move out or die, home reversion beats lifetime loans. This is because the proportion of your home you are giving up is agreed up front. With lifetime loans the proportion of your home given up increases the longer you stay in your home.
With home reversion you sell a percentage of your home to release cash, but hold onto the rest and can live in the home until you permanently move out or die.
Home Plus are the only current provider of home reversion products in Ireland.
Home Plus FAQs
How much of a lump sum can I access from Home Plus?
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.
An example of use of Home Plus for a home deposit ...
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.
What's the main criteria to qualify for Home Plus?
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.
What are the Home Plus Home Reversion terms?
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.
Our top 3 Home Reversion tips ...
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.)
You can get in touch with Julie at Walsh Group who can talk you through the full Home Plus option and assist you with completing a home reversion application.