How Does It Work?
You receive a lump sum payment now and in return Homesafe is entitled to an agreed percentage of your future home sale, whenever that might be.
The process in more detail:
1. You enter into a Homesafe Contract to sell a share of the future sale proceeds of your home. This share is a fixed percentage of the sale proceeds and it is only due when you sell the home, or when the home is sold after the death of you and your partner.
2. In exchange, you receive a cash amount on entering into the Homesafe Contract. The cash you are paid is less than the 'face value' of the share you contract for due to the valuable entitlements you (and your partner) retain for life.
3. When the home is eventually sold, you or your estate will be entitled to the share of sale proceeds not sold to Homesafe (for example, if you sold 20 percent to Homesafe and you comply with the Homesafe Contract, you will be entitled to a minimum of 80 percent of the net proceeds from the sale of your home.)
The basic elements of Homesafe....
- Homesafe pays a lump sum cash amount in exchange for a share of the future sales proceeds of the home.
- You retain the right to live in your home or rent it out and keep the rent.
- Therefore, the amount that Homesafe pays in cash is less than the same share of the property's value today.
- Homesafe determines how much it can advance, or the share it will receive in the future, based on the age of the homeowners and the value of the property today.
- In doing so Homesafe makes certain assumptions as to how long the Contract may be in place.
To find out how Homesafe Debt free Equity Release can assist you, please click here.
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