Guaranteed Inheritance Lifetime Mortgage by Spry Finance

Spry’s Guaranteed Inheritance Lifetime Mortgage allows you to release money from your principal private residence, tax free, without having to sell it. You retain full ownership of the property and continue to live in it for as long as you wish. You do not have to make monthly repayments unless you want to. The loan will usually be repaid from your estate or on the sale of your property. With this Lifetime Mortgage you will retain a 20% participation in the ultimate net sales proceeds of your property when its sold.

As long as you are not in default, Spry Finance guarantees that you or your estate will benefit from 20% of the future value of your home even if the loan balance (loan plus accrued interest and charges) exceeds future value of your home (being the net sale proceeds of the property).

 

Who is this product suitable for?

Spry’s Guaranteed Inheritance Lifetime Mortgage is perfect for the customer who:

– Is aged 60 or over, If there are two applicants, the younger applicant must be 60 or over

– Own their own residential property in the Republic of Ireland

– Are resident in the Republic of Ireland

– Want to borrow a minimum of €30,000

– Want to ensure that they retain a 20% interest in the net sales proceeds of their property to fund their future needs e.g. to pass on to their heirs or to contribute to the cost of long-term care in the future

 

Property Eligibility

For your property to be eligible it must meet the following criteria,

– It must be your primary residence

– It must be of standard construction located in the Republic of Ireland

– It must have a minimum value of €225,000 outside of Dublin or €300,000 in Dublin

– It must have a maximum of two named owners on the deeds of the property

– It must be mortgage free. If there is a small existing mortgage or charge on the property, this must be cleared either from savings or from the proceeds of your lifetime loan

– Certificate of Title must be confirmed by your Solicitor

– Home insurance must be maintained at all times on your property

– All local property tax charges must be up to date

 

How much can I borrow?

– The minimum loan size is €30,000

– The amount you can borrow is calculated as a percentage of your home’s value and depends on your age, see the table below, subject to an overall maximum of €500,000 regardless of your age or property value

– Customers aged 60 may borrow up to a maximum of 12% of the value of their property

– For example a customer who is 70 years of age may borrow up to a maximum of 20% of the value of their property

– In order to gain an accurate value of your property, an independent valuer will be appointed by Spry Finance

 

Calculation of the Guaranteed Inheritance Lifetime Mortgage amount

The maximum loan size in each case is determined by use of a maximum Loan to Value Ratio (“LVR”) specified according to the age of the younger nominated resident. 

The following table summarises the range of LVRs according to the age of the younger nominated resident.

*Loan Limit means the percentage of the property’s value that can be borrowed

 

Example: How much can I borrow if I am 72 years of age and what is guaranteed?

Based on your age you could borrow up to a maximum of 21.6% of the value of your property. Assume the current value of your property is 500,000 then you could borrow up to a maximum of €108,000. You are guaranteed 20% of the value of your home in the future, even if the future loan balance exceeds the value of your home.

 

Interest Rate

The interest rate of the loan is a fixed rate of 7.05% per annum, added to your loan monthly. Rates are subject to change and may change before the loan is drawn down, the Loan Offer is value for 30 days regardless of changes.

 

Optional Repayments

You can choose to pay up to 10% of the original loan amount per year to service the interest and manage the balance of your loan without incurring an Early Repayment Charge (ERC) should you wish to.

– You can do this by making regular monthly direct debit repayments or by electronic payment

– Payments in excess of 10% of the original loan balance per year may result in an ERC

Full details of the ERC are provided in the Spry Finance Guide to a Lifetime Mortgage, including details of exemptions to the ERC.

 

Green Lifetime Mortgage

The Green Guaranteed Inheritance Lifetime Mortgage mirrors all the features of the Guaranteed Inheritance Lifetime Loan with a reduced interest rate of 6.85% and a lower set up fee of €1,350.

 

How do you qualify?

– If you have an existing Building Energy Rating (BER) of B3 or better and can supply a BER certificate at the time of the loan application

– If you intend to use your Lifetime Mortgage to fund home improvements to achieve a BER rating of B3 or better within 12 months of drawing down your loan

– If you intend to use a minimum of 50% of your Lifetime Mortgage for qualifying home improvements within 12 months of drawing down the loan

 

Green Lifetime Mortgage Example

*Based on a 15-year term

 

Qualifying Reasons

– Wall, attic & floor insulation

– Windows & door upgrades or replacements

– Ventilation systems

– Renewable energy systems, heat pump, solar panels

– Sustainable water / heating systems

– Boiler upgrades & pipe insulation

– Installation of energy efficient controls

– Deep retrofit (e.g. SEAI Deep Retrofit Grant)

 

Advice

MyMortgages will advise you on the suitability or otherwise of a Lifetime Mortgage for meeting your objectives. 

We strongly recommend that you seek additional financial advice from a qualified source about any possible effect that a Lifetime Mortgage could have on any means-tested benefits and other related matters.

You must seek independent legal advice from a Solicitor.

We strongly recommend that you discuss your intention to apply for a Lifetime Mortgage with your family.