2.2.14 Home Income Plans
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A particular type of annuity contract, whereby a homeowner may
raise a loan on the house and invest it in a purchased life annuity.
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Available to the elderly.
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Advances of up to 80% of the property valuation may be available.
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The purpose of the contract is to provide income from the house
equity. Essentially, the extra income will be that remaining after
the loan interest has been paid.
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MIRAS relief is available on the interest payable on the first
£30,000 of the loan but only for those plans set up before
10 March 1999 by those born before 6th April 1935.
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Alternatives to home income plans include:
- Home reversion plans.
- Roll up loans.
- Shared appreciation mortgages (SAMs)
- Protected appreciation mortgages.
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