As the CEO of RoyaleLife, Robert Bull leads the United Kingdom’s largest bungalow provider. He recently shared details about his company’s Home part Exchange Programme and how it can be a great alternative to equity release.
When people retire, they have the option of doing an equity release on their home. This is a way of borrowing against their home’s value, Bob Bull explained. The most popular type of these is the lifetime mortgage. The loan is secured by the value of your home, and the homeowner retains its ownership.
The problem with equity release, Robert Bull said, is that the loan starts immediately accumulating interest. For example, you may borrow £100,000 on your £450,000 home. After five years and a 6.5% interest rate, you owe more than £137,000. After 20 years, the loan can exceed the value of your home. This means you can’t leave any of it to your heirs.
RoyaleLife introduced the Home Part Exchange Programme as an alternative to equity release. Bob Bull said this is a debt-free solution that gives you access to cash. You don’t pay any interest or need to repay a loan. His company will pay you 100% of the value of your home. You then buy one of his company’s bungalows and pocket the difference.
Robert Bull gave the example of a home worth £450,000. If you buy a bungalow from his company valued at £250,000, you get a new home and £200,000 in cash to do with as you please. His company pays all the costs like real estate agent fees, stamp duty and so on. The bungalows are fully furnished, so they can be moved into right away.
Robert Bull’s: Facebook Page.