Jargon Buster
A B C D E F G H I J K L M N O P Q R S T U AllRent
SHIP members offering Reversion plans operate a lifetime lease on a 'peppercorn' rent basis. Some plan providers will charge you a nominal £1 per month
Residential Care
Once you move permanently into residential care then your property is sold.
If you are in a Reversion plan, then any retention is paid to you.
For mortgage plans, the loan & interest is repaid with any balance going to yourself.
Some plan providers may make an Early Leaving payment to you, reflecting the property being available for sale earlier than expected.
Retention or Retained Interest
This term used to describe your % interest in a property where a Reversion plan has been taken out, and you have not utilised all the equity.
For example, you sell 25% of your home and retain a 75% retained interest in the property. After a few years, you decide to sell another 25% of the equity, taking advantage of any rises in value in the interim period. Following this, you still retain a 50% interest in the equity of your home.
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