Since its recent launch, Home Plus, Ireland’s home equity release specialist, has earmarked almost nine million euro for homeowners, to assist them financially by buying a share in their homes, through its home reversion solution.
The nine million euro is spread across 61 customers who will receive an average of €144,741 for the share they wish to sell, and at the same time provide them with a solution for their financial needs.
As part of the agreement, the homeowners retain the remaining share of their home and are able to continue to live there for the rest of their life, or alternatively until they enter long term care.
The equity shares to date purchased by Home Plus ranges from between 27 percent and 74 percent, in exchange for paying the home owner a lump sum, which provides financial freedom and options in terms of use for the money.
Home Plus customers are utilizing their lump sum as a solution for a variety of needs, including: responding to an immediate financial challenge; helping children get on the property ladder with a deposit; a once in a lifetime holiday; settling out residual mortgage debt; buying a holiday home abroad; resolving a divorce while keeping the family home, renovating a property, energy efficiency upgrades, and many more.
“We are delighted to see strong demand for our home reversion product since we launched this service. While still unknown to many, public awareness of home reversion and its potential as a financial solution is clearly on the rise. It is important that people over 55 with significant cash needs, who may be excluded by the wider financial services industry because of age, income or other grounds, are aware that home reversion exists as a potential solution.
“Properly and carefully structured, home reversion allows people to resolve debts or other important financial needs, while at the same time ensuring they can remain in their home enjoying an independent life,” Ian Higgins, CEO of Home Plus, said.
Because a homeowner sells their home and keeps living there for the remainder of their lives the lump sum paid will be less than if it was sold on the open market and the homeowner moved to alternative accommodation.
Regulated by the Central Bank of Ireland, Home Plus has a duty of care to customers and mandates that customers seek professional advice before taking out a home reversion plan. In line with this, all customers must receive advice from a qualified financial advisor, and the company further recommends independent legal advice to ensure that customers fully understand all aspects of the product and that it is suitable for their needs.
