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04 Dec 2021

Home Plus launches Home Reversion Product for over 55’s in Limerick

Limerick-based Qualified Financial Adviser joins Home Plus QFA Panel

Home Plus launches Home Reversion Product for over 55’s in Limerick

Home Plus launches Home Reversion Product for over 55’s in Limerick

Home Plus has launched its home reversion product which is available to customers in Limerick with immediate effect in the Irish market.

This distinguishes the company as the only current provider of home reversion plans in the country. Limerick-based Qualified Financial Adviser (QFA) First Choice Financial Services has joined Home Plus’s QFA Panel.

Since the company launched its home reversion product, Connacht and Ulster have accounted for a combined 9% of incoming applications, while Munster has accounted for 24%, Dublin has accounted for 46% and the rest of Leinster has accounted for 22%.

The company’s home reversion product will provide a clear financial solution for people over the age of 55 who have some or all of the equity tied up in their home, by providing them with choices on how to spend their retirement years, while ensuring that they can remain in their own home.  

Home reversion allows a home owner to sell a share in their home, typically in a range from 20% to 70%, in exchange for a lump sum.

As part of the transaction, the homeowner will retain the remaining share of their home and continue to live there for the rest of their life, or alternatively until they enter long term care.

The lump sum, in many cases, can be used to resolve mortgage or other debt when a borrower is in arrears and is in danger of re-possession or more generally can also give money to better enjoy their retirement years. 

Home Plus is a retail finance provider that is regulated by the Central Bank of Ireland.

As we have a duty of care to our customers, the company 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. 

Ian Higgins, CEO of Home Plus said:

“We are delighted to bring this new financial product to the market in Ireland, which can deliver a long-term solution for customers who may be excluded by the financial services industry because of age, income or other grounds.

"Through Home Plus we are launching a solution for people who may be at risk of losing their home; and for people who have a large portion of their wealth tied up in their home, with little left over for their retirement needs.

"Properly 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.” 

Because the homeowner has the ability to stay in their home for the remainder of their lives rather than being a straightforward sale of the home, the lump sum paid will be less than the market value with vacant possession.

The amount paid to homeowners through home reversion is an actuarial calculation taking into account a variety of factors including the market value of the property with and without vacant possession, house price inflation, and the life expectancy of the homeowner.

If a homeowner requires a higher lump sum, they may need to make a monthly payment as part of the home reversion plan, but this option is not mandatory.

Furthermore, if the homeowner takes the decision to get a higher lump sum, the amount of the monthly payment is calculated based on what they can afford on a long-term basis.  

See plus.ie for more information.

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