Your Questions Answered
Valuations, charges, fees & tax
- What are the costs involved in taking out a home reversion plan with Bridgewater?
- Will there be a charge for advice?
- Is there an arrangement fee?
- Does my property have to be valued?
- Why aren’t you paying me full market value for my house?
- How much can I raise?
- What interest rate will I be charged for a Bridgewater Home Reversion Plan?
- Will I have to pay tax on the money raised?
- Will releasing equity from my home affect any state benefits I receive?
The costs involved are:
Your valuation fee; this fee is payable on application directly to Bridgewater (this is dependant on your property value – click here for details of current fees)
Your own legal fees and disbursements, which you will need to pay directly with your solicitor
Your financial adviser may charge you a fee; this is something they will discuss with you on your first appointment.
Your financial adviser may charge you a fee for the advice they give. How advisers charge fees varies.
Your adviser should provide you with details of any fees before you make an application.Back to top
We do not charge an arrangement fee for our products.Back to top
Yes. The amount of cash you will receive is based on the current value of your property; therefore it is essential that an independent valuation is carried out.Back to top
As you are granted a lease for life, which enables you to live in the property rent free for as long as you wish, you do not receive the full market value. The lifetime lease has a considerable value if you were to consider what you would pay to rent a similar property for the rest of your life.Back to top
The cash sum you receive depends upon your age(s), whether the application is on a single or joint basis, the current open market value of the property and the percentage being sold.
For an indication of how much you can release please click here to visit our equity release calculator.Back to top
A home reversion plan is not a loan or a mortgage and therefore you are not charged interest. You simply sell a percentage of your property and that remains the same throughout the plan unless you decide to release further equity at a later stage.Back to top
Money raised through equity release from your main residence is not usually taxable. However your financial adviser can discuss with you the possible tax implications of taking out equity release.Back to top
Money raised through equity release may affect any benefits you receive. Your financial adviser will discuss this with you.Back to top