Equity release from Aviva

Transcription

1 You should read this with your personalised illustration. Equity release from Aviva Tariff of charges A guide to the charges for our lifetime mortgages

2 Learn about the charges This booklet gives you a complete list and description of the charges on your lifetime mortgage. Please read it together with the other product information your adviser has given you. It is important to consider the benefits and risks before deciding whether a lifetime mortgage is right for you. The charges reflect our reasonable costs for administering your lifetime mortgage. We ll review them from time to time and may increase or decrease them proportionately if our administration costs have changed. We ll tell you about any changes at least 30 days before they take effect. We ll also send you a new copy of the tariff of charges. You can find details of the interest rate you will be charged in your personalised illustration. 2

3 Setting up your lifetime mortgage The main charges for setting up your lifetime mortgage are an arrangement fee, a valuation fee and your own legal costs. Arrangement fee This covers the cost of setting up the lifetime mortgage and includes all our legal fees and disbursements. You can find details of the arrangement fee in your personalised illustration. Valuation fee You ll have to pay for an independent valuation of your home. The cost will depend on the estimated value of your home. The table below shows our current valuation costs which include VAT and an administration fee of 20. Estimated value of your home Fee 75, , , , , , , , ,001 1,000, ,000,001 1,100, ,100,001 1,200,000 1,120 1,200,001 1,500,000 1,270 1,500,001 2,000,000 1,420 Over 2,000,000 please ask us about this Please note: for some offshore islands, an additional fee will be charged to cover the cost of travel, including additional travel time, to these properties. We ll tell you of any additional cost at the time of your application if this applies. Your legal fees You must appoint a legal adviser to act for you and pay their fees. We ve shown the fees for solicitors who are members of The National Solicitors Network. You can contact them on or text your post code to to receive information about solicitors local to you on their panel. Description of charges Standard fixed cost Members of The National Solicitors Network 350 plus VAT In some cases, you may have to pay extra charges. Extra charges Where your home is 70 plus VAT charged where unregistered 35 plus VAT charged where Where your home is leasehold Where you are buying your 85 plus VAT charged where home Where a transfer of equity is 75 plus VAT charged where needed 50 plus VAT charged where Home visit (where available) Where your home has Fees vary we will tell you if this complex title problems applies to you Re-inspection fee We ll charge 60 if we need to get the valuer to inspect your home again. The 60 includes an administration fee of 15. 3

4 During your lifetime mortgage Additional borrowing You may be able to apply to borrow more money. We ll treat this as a new application. 1. Application fee You must pay an application fee of 75. We ll add this to your loan amount. 2. Cost of revaluing your home You must have your property revalued. We base this fee on the estimated value of your home, as shown in the table below. Estimated value of your home Fee 75, , , , , , , , ,001 1,000, ,000,001 1,100, ,100,001 1,200, ,200,001 1,500, ,500,001 2,000, Over 2,000,000 Available on request Ways to pay You can pay the fees by: debit card credit card same day electronic transfer. Contacting us If you have any questions, please talk to your financial adviser. Alternatively, you can call us on Please bear in mind that we can only answer questions about Aviva products. We re open Monday to Friday 8am to 8pm Saturday 9am to 5pm Sunday 10am to 4pm Closed bank holidays Re-inspection fee We ll charge 60 if we need to inspect your home again, which includes a 15 administration fee. 3. Legal fees You won t have to instruct a legal adviser when you apply for additional borrowing. Change of ownership You must tell us if you want to add or remove someone from the lifetime mortgage. 1. Application fee You must pay an application fee of Cost of revaluing your home You must have your property revalued. We base this fee on the estimated value of your home, as shown in the table above. 3. Legal fees You must appoint a legal adviser who will act for both of us. You will be responsible for paying their fees. 4

5 Moving property You can apply to transfer your lifetime mortgage to a new property if you move home. 1. Application fee You must pay an application fee of Cost of valuing the new property You must have the new property valued. This fee will be based on the estimated value of the property as shown in the table of valuation fees on page Re-inspection fee We ll charge 60 if we need to inspect your home again, which includes a 15 administration fee. 4. Legal fees You must appoint a legal adviser who will act for both of us. You will be responsible for paying their fees. Repaying all of your lifetime mortgage early. This lifetime mortgage is designed to last for the rest of your life or until you, and if you have a joint mortgage, the other joint borrower, need to move into long-term care, as defined in our terms and conditions at the time. Can I repay my lifetime mortgage in full, before I die or go into long-term care? Your lifetime mortgage isn t designed to be repaid in full before you die or go into long-term care. If you want to repay it early, and the exclusions below don t apply, you could face an early repayment charge. If you intend to pay off your lifetime mortgage in full, you should discuss this with your financial adviser. If you decide to go ahead, the following will apply to any early repayment charge you may have to pay: the early repayment charge will never be more than 25% of your initial loan amount plus 25% of any additional amounts you ve borrowed. Circumstances in which an early repayment charge doesn t apply; If you re making voluntary partial repayments. This facility is available on lifetime mortgages applied for on or after 28 April Please see your terms and conditions for more information. When you and all borrowers on the lifetime mortgage have either died or moved into long-term care. You have a joint lifetime mortgage and you repay it within three years of the date that your partner dies or from the date that you notify us that one of you needs long-term care. You want to sell part of your property and we have given you consent to do this. You d like someone to move into the property with you as a joint borrower and for the lifetime mortgage to be repayable when the last person dies or goes into long-term care (and we have given you our consent). The value of yields on gilts will have an impact. The gilt yield at the time of redemption has a direct relation to whether an early redemption charge is payable. Your financial adviser will be able to explain this to you and it is also described in your terms and conditions. Voluntary partial repayments If you applied for your lifetime mortgage on or after 28 April 2014 and you ve had your lifetime mortgage for a year, you also have the option to make voluntary partial repayments if you d like to. If you take any additional borrowing you must wait one year before making a voluntary partial repayment. However, if you make a voluntary partial repayment you ll need to wait a year before taking any additional borrowing. Please refer to our terms and conditions for further details. if you take the Lifestyle Flexible Option and want to repay it, you may also have to pay an early repayment charge of up to 25% on each amount you ve taken from your cash reserve. If you applied for your lifetime mortgage or any additional borrowing before 18 April 2011, you ll also have to pay a 110 administration fee for each loan you took out. This doesn t apply to any money you ve borrowed from your cash reserve. 5

6 When your lifetime mortgage ends Your lifetime mortgage and the interest on it must be repaid in full when: the last surviving borrower dies, or the last surviving borrower leaves the property permanently because they need long-term care, as defined in our terms and conditions booklet, or both borrowers leave the property permanently because they need long-term care. You will not have to pay an early repayment charge in these circumstances, however repaying your loan in full before the above could mean you have to pay early repayment charges. Further information can be found in A guide to our lifetime mortgages but please refer to your terms and conditions for full details. If you applied for your lifetime mortgage before 18 April 2011 and it ends due to any of the reasons above we will charge you an administration fee of

7 Where to find more information Three ways to find out more information about Equity Release options: 1. Contact our support team on Monday to Friday 8am to 8pm Saturday 9am to 5pm Sunday 10am to 4pm Closed bank holidays 2. Visit 3. Contact your financial adviser Retirement Investments Insurance Health Aviva Equity Release UK Limited. Registered in England No Aviva, Wellington Row, York, YO90 1WR. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number aviva.co.uk PF /2017 Aviva plc