SINGLE PAYMENT FULL REVERSION EQUITY RELEASE PLAN. Plan 1 Freehold Full Reversion

Transcription

1 SINGLE PAYMENT FULL REVERSION EQUITY RELEASE PLAN Plan 1 Freehold Full Reversion

2 INDEX Page PART A Preliminary Information How the Equity Release Plan works 3 PART B Documentation Agreement 5 Lease 7 PART C Conditions Definitions 12 The Conditions 14 PART D Supplemental Documentation Certificate of Existence 20 Solicitor s Certificate 21 Indemnity 23 Waiver 24 Survey Valuation 1 Property Information Form 2 1 A copy of the Survey Valuation will be bound into the signature copy of the Equity Release Plan. 2 A copy of the Property Information Form will be bound into the signature copy of the Equity Release Plan. 2

3 PART A Preliminary Information HOW THE EQUITY RELEASE PLAN WORKS Crown Equity Release Ltd s Equity Release Plan ( the Equity Release Plan ) as contained in this booklet is believed to offer both fairness and security for you and the Buyer. As a further precaution to ensure that the Equity Release Plan has been fully discussed with you by an independent professional, your Solicitor will be required to sign the Solicitor s Certificate. You will be asked to sign three documents, namely the Agreement, the Transfer and the Lease. A brief description of these three documents is set out below. Agreement The Agreement sets out the terms under which you will sell your Property, including the sale price and the completion date. It incorporates the Conditions that govern everything else about the Equity Release Plan, such as what happens: - If you want the Property sold so that, for example, you may move in with relatives or into a residential home; or If you want to move to another property; or On your death (or, if there are two of you, on the death of the survivor of you) The Conditions are set out in Part C. On the day of completion (i.e. the day when you sell your Property to the Buyer), you will be granted a Lease, which will entitle you to continue living in the Property, effectively rent free and for your lifetime or as long as you so wish. You may be entitled to an additional lump sum payment from the sale proceeds of the Property if, within the Equity Release Plan, you permanently leave the Property without asking the Buyer to purchase a Substituted Property for you to live in. The Early Leaving Schedule determines the amount of any such payment. 3

4 Lease The Lease sets out the terms of your continued occupancy of the Property. You will remain responsible for repairing and maintaining your home, for the rates, the service charges (if any) and the utilities, and for the insurance of the Property. The Lease lasts for 999 years but will effectively come to an end following your death (or, if there are two of you, following the death of the survivor of you), or once the Property or any Substituted Property has been sold. If, within the Equity Release Plan, you want the Property sold and a Substituted Property is purchased, a new Lease of that Substituted Property will be granted to you on more or less identical terms. Solicitor s Certificate Your Solicitor will have to sign a Certificate to the effect that he has verified your identity and authenticated your signatures and that he has explained to you how the Equity Release Plan works, together with the possible disadvantages, so that you can make absolutely sure that the Equity Release Plan meets your needs. This booklet contains the various documents mentioned above and sets out in more detail all the Conditions that apply to the Equity Release Plan. It also contains other documents referred to in the Conditions. 4

5 PART B Equity Release Plan Documentation AGREEMENT Agreement Date : 200 PARTICULARS Seller : [ ] of [ ] Buyer : [ ] of [ ] [Spouse : of the same address] Property : [ ] Title Number : [ ] [Root of Title : ] Completion Date : 200 Purchase Price : Retention : [N/a] or [ ] Retention Works : [N/a] or [As set out in The Schedule] 1. The Seller means you and your personal representative(s). 2. The Equity Release Plan means the document so described of which this Agreement forms part. 3. The Seller will sell and the Buyer will buy the Property for the Purchase Price. 4. The Retention is an amount equal to the anticipated cost of the Retention Works. 5. The Retention Works are the essential repairs highlighted in the Survey Valuation. 6. This Agreement incorporates the Standard Conditions of Sale (Third Edition). If there is a conflict between those Standard Conditions of Sale and the Equity Release Plan, the terms of the Equity Release Plan shall prevail. 7. No deposit will be paid on exchange of contracts. 5

6 8. The Seller warrants that [apart from the Spouse] no other person is in actual occupation of the Property nor entitled to any share or interest in it or in any part of it. 9. The Property is sold subject to and with the benefit of the Conditions and other provisions contained in the Equity Release Plan. 10. The Transfer of the Property to the Buyer will be in Form TR1 and the Seller will sell with Full Title Guarantee. 11. The Property will be sold subject to the Encumbrances (if any) referred to in the Schedule. 12. The parties agree to enter into the Lease in the form annexed on completion. [The Spouse agrees to the terms of this transaction in consideration of the grant of the Lease to the Seller and to the Spouse jointly.] 13. Any obligation remaining to be performed or observed at completion will remain in full force and effect notwithstanding that completion has occurred. 14. For the purposes of the Contracts (Rights of Third Parties) Act 1999 and notwithstanding any other provision of the Equity Release Plan the Equity Release Plan (including the documents contained in or referred to in it) is not intended to, and does not, give any person who is not a party to it any right to enforce any of its provisions. Encumbrances THE SCHEDULE [The entries appearing in the Registers of the Title above referred to (other than financial charges).] or if Title not registered [The matters contained in or referred to in the following documents: - insert details of relevant documents] Retention works [N/a] or [insert details] This Agreement incorporates everything within the Equity Release Plan 6

7 WARNING: This is a formal document designed to create legal rights and legal obligations. Take advice before signing it. SIGNED by the Seller SIGNED by the Spouse SIGNED by or for and on behalf of the Buyer 7

8 LEASE Land Registration Acts [London Borough] or [County and District]: [ ] Title Number : [ ] Property : [ ] DATE : 200 PARTIES 1 [ ] of [ ] ( the Landlord ) Spouse ) Tenant ) 2 [ ] of [ ] [( the Seller ) and [ ] of the same address ( the collectively referred to in this Lease as] ( the DEFINITIONS the Agreement means an Agreement dated the day of 200 and made between [the Tenant (1) and the Landlord (2)] or [the Seller (1) the Spouse (2) and the Landlord (3)] the Tenant means the person or persons above described and where the Tenant is more than one person includes the survivor of them. the Property means [ ] the Term means a period of 999 years commencing on the date of this Lease the Encumbrances means all obligations which affect the Property as set out in the Agreement Expressions defined in the Agreement have the same meanings in this Lease OPERATIVE PROVISIONS 1. Lease 8

9 1.1 In consideration of the Tenant s obligations the Landlord Leases the Property to the Tenant for the Term (subject to earlier termination if Clause 4 applies) at the annual rent of a peppercorn (if demanded). 1.2 The provisions of the Agreement, the Conditions and all the other terms of the Equity Release Plan are incorporated in this Lease except to the extent that the same may be inconsistent with the specific terms of this Lease, in which case the terms of this Lease shall prevail. 1.3 The Property is leased subject to the Encumbrances. 2 Tenant s Obligations The Tenant covenants with the Landlord: 2.1 Insurance To insure the Property to its full reinstatement value in the joint names of the parties under a Comprehensive Householders Policy of Insurance agreed by the Landlord To pay the insurance premiums To use all money received from any insurance claim in fully rebuilding and reinstating the Property. 2.2 Rates and Outgoings To pay all existing and future rates assessments and outgoings imposed upon the owner or occupier of the Property. 2.3 Repair To keep the Property in good repair and condition (damage by an insured risk excepted unless the insurers refuse a claim because of any act or neglect or default of the Tenant) throughout the Term and to yield up the Property when the Term comes to an end (howsoever determined) in no worse condition and state of repair than existing at the date of this Lease (as evidenced by the Survey Valuation appended to the Equity Release Plan but on the assumption that any Retention Works specified in the Schedule to the Agreement have been properly carried out and the Surveyor s comments (if any) relating to ongoing maintenance have been properly observed) and to keep the garden tidy and when requisite to mow the 9

10 grass and keep the hedges and borders adequately trimmed and weeded. 2.4 Decoration To re-decorate the exterior of the Property at least once in every five (5) years of the Term and the interior of the Property at least once in every seven (7) years of the Term and in each case in a proper and workmanlike way. 2.5 Maintenance of Common Parts To pay the appropriate proportion of the expenses payable in respect of the repairing, maintaining and cleaning all accesses party walls fences sewers drains gutters pipes pavements and other things (if any) used in common by the Property and any other premises. 2.6 Certificate of Existence To return the Certificate of Existence to the Landlord not less than once in every six (6) months of the Term confirming the existence of the Tenant and the Tenant s permanent address and also confirming that the Property continues to be occupied solely by the Tenant in accordance with the provisions of clause 2.13 below. 2.7 Alterations Not to make any alterations or additions to the Property (unless the Landlord has given prior written consent) nor to cause any damage to the Property nor to permit or suffer any of these things to be done. 2.8 To allow inspections by the Landlord To allow the Landlord or the Landlord s Surveyor or Agent, with workmen if necessary, and upon at least one week s previous notice in writing to examine the state of occupation and condition of the Property. 2.9 Works following inspection Following inspection the Landlord or the Landlord s Surveyor or Agent may give the Tenant written notice specifying any repairs needing to be done and to require the Tenant to execute the same and if the Tenant does not arrange for the repairs to be carried out within twenty eight (28) days the Landlord or the 10

11 Landlord s Surveyor or Agent and workmen may enter upon the Property and execute the repairs and the cost incurred by the Landlord together with Interest will become payable immediately by the Tenant on demand The Landlord s rights of entry The Landlord may exercise the rights of entry at any time, within business hours, without prior notice: If there has been a breach by the Tenant of this Lease; or In case of emergency; or For the purpose of obtaining vacant possession of the Property in accordance with the provisions of the Agreement Expenses To pay all expenses (including Solicitor s costs and Surveyor s fees) incurred by the Landlord incidental to the preparation and service of notice under Section 146 of the Law of Property Act 1925 even if forfeiture of the Lease is avoided otherwise than by relief granted by the Court Not to Assign Not to assign mortgage charge underlet or part with or share possession or occupation of the whole or any part or parts of the Property (other than as permitted by clause 2.13 below or by any special condition contained in the Agreement) To use as a private residence To use the Property for the purpose of a private residence for the Tenant solely EXCEPT THAT the Tenant may have a carer, housekeeper, nurse or companion to live at the Property PROVIDED THAT before taking up occupation the Tenant signs and delivers to the Landlord an Indemnity and the carer (or similar person) signs and delivers to the Landlord a Waiver as specially provided in Condition Notices If the Tenant receives any notice order direction or other thing from any competent Local or Government Authority affecting or likely to affect the Property to immediately provide a copy of it 11

12 to the Landlord and at the Tenant s expense to take all steps reasonably specified by the Landlord to comply with such notice, order direction or other thing To observe and perform generally To abide by observe and perform and to make all payments as a result of the exceptions reservations covenants conditions agreements and stipulations affecting the title to the Property and to observe and perform all statutory requirements relating to the Property. 3. Landlord s Obligations The Landlord covenants with the Tenant: 3.1 If the Tenant performs and observes the Tenant s obligations the Tenant may occupy and enjoy the Property during the Term without any interruption or disturbance from or by the Landlord or by any person acting for the Landlord. 3.2 That the Tenant observing and performing all the terms and conditions of the Agreement on the Tenant s part to be observed and performed the Landlord will observe and perform the terms and conditions of the Agreement imposed on the Landlord and in the event of a sale of the freehold reversion in the circumstances where this Lease continues the Landlord will procure from the purchaser of the Property a covenant for the Tenant s benefit that the new owner will observe and perform all the Landlord s obligations both under this Lease and under the Agreement. 4. Termination It is agreed between the Landlord and the Tenant: 4.1 This Lease may be determined by not less than one month s written notice served by the Landlord upon the Personal Representatives of the Tenant or left at the Property. This notice may not be served until the death of the Tenant or if two of them until the death of the survivor, but may be served at any time thereafter. Furthermore if you remain absent from, or abandon, the Property for whatever reason for a continuous period of more than six (6) months, then the Buyer may treat the absence or abandonment as an irrevocable request for the Property to be sold, in which case the provisions of Condition 1 will apply except that the Buyer must also obtain an order of the 12

13 Court authorising the sale. This is your safeguard against the Buyer s abuse of its powers under this Condition. 4.2 The Property must be cleared of the Tenant s furniture and personal effects leaving the same in a clean and tidy condition by the expiry of the notice. 4.3 If any of the covenants or the Tenant s obligations in this Lease or in the Agreement are not performed or observed it will be lawful for the Landlord at any time thereafter to re-enter the Property or any part of it (but only in the event of a Court Order having been previously obtained) and thereupon this Lease will come to an end but without prejudice to any claim the Landlord may have in respect of an earlier breach of the Tenant s obligations. 5 Notices 5.1 Any notice to be given under this Lease must be in writing and may be delivered to the other party or sent to the other party by prepaid first class post. In addition, the Landlord may give notice to the Tenant by leaving it at the Property. 5.2 If the expression the Tenant refers to more than one person the Tenant s obligations are made by those persons jointly and severally. 5.3 For the purposes of Section 48 Landlord and Tenant Act 1987 the Landlord gives the Tenant notice that the address at which notices (including notices in proceedings) may be served on him by the Tenant is the address appearing against the Landlord s name at the commencement of this Lease or such other address as the Landlord may notify to the Tenant in writing at any time whether during the continuance or after termination (for whatever reason) of this Lease. 6 Miscellaneous Nothing in this Lease is intended to confer any benefit on any person who is not a party to it. EXECUTION In witness whereof the parties hereto have executed this Deed the day and year first above written 13

14 PART C Conditions (covering the Equity Release Plan) DEFINITIONS Agreement Balance Buyer the document which both you and the Buyer will sign at the commencement of the Equity Release Plan which incorporates the Conditions and the information in this booklet. is the difference between the sale proceeds of the Property and the purchase cost of a Substituted Property. the person firm or company who buys your Property. Conditions mean the Conditions contained in this Part C. Completion Date the day of completion of your sale of the Property to the Buyer. Early Leaving Schedule the Schedule set out in Condition 1.5. Interest Lease Notice Open Market Value 4% per annum above the base rate for the time being of NatWest Bank plc or if no base rate is published at the time 12% per annum. the Lease of the Property or the Substituted Property granted by the Buyer to you in accordance with the Conditions, in the form set out in Part B. means notice in writing signed by the party serving the notice and delivered to the other party using the procedure set out in Condition 8. the price which the Property or the Substituted Property would expect to fetch if sold on that date on the open market by a willing seller to a willing buyer with vacant possession. This value will be determined by agreement, or in accordance with Condition 6 if no agreement can be reached. 14

15 Part Property Purchase Price Relevant Expenses means reference to the appropriate part of this Equity Release Plan. the Property referred to in the Agreement or, where appropriate, the Substituted Property. the amount to be paid to you by the Buyer on the Completion Date. Legal and other professional charges, Stamp Duty, Land Registry fees and other expenses, estate agents commission, Survey and/or Valuation fees, Crown Equity Release Ltd s moving fees (if any) and any other costs directly associated with: - i) the sale of the Property but not its purchase under this Equity Release Plan; ii) the sale of the Property and the purchase of the Substituted Property; and iii) the preparation of the Lease of the Substituted Property and any associated documentation but in each case specifically excluding your own legal costs and any apportionments or outgoings relating to the Property. Seller s Allowance Spouse Substituted Property you and your the amount of the Relevant Expenses towards which the Buyer shall contribute up to an allowance of 2½% of the proceeds of sale of the Property. means a person with whom the Seller habitually co-habits (married or unmarried) but only if that person is not a co-owner of the Property. an alternative property purchased at your request by the Buyer under Condition 2 to replace the Property. the person or persons (called the Seller in the Agreement) who have sold the Property to the Buyer and any additional person (usually the Spouse but only if separately a 15

16 party to the Agreement) to whom the Lease is granted or where appropriate, your personal representatives and in circumstances where there are two of you it will also refer to the survivor of you. 16

17 THE CONDITIONS 1 Sale of Property no Substituted Property purchased 1.1 You may, by Notice in writing to the Buyer, ask for the Property to be sold, in which case the Buyer will try to sell the Property at the Open Market Value. 1.2 The Buyer will nominate the estate agents to be instructed on the sale. The Buyer s Solicitors will handle the sale of the Property. You may instruct an independent Solicitor to advise you separately and to liase with the Buyer s Solicitors, but this must be at your own expense. Although the Buyer will conduct the sale, the Buyer will try to take into account your own wishes, for example, your preference for the moving date. 1.3 On leaving the Property, you will surrender the Lease of the Property to the Buyer without payment and sign the necessary Deed of Surrender to be prepared by the Buyer s Solicitors. You will be asked to hand to the Buyer s Solicitors, shortly prior to completion, the Deed of Surrender, the original Lease, the leasehold Land Certificate and any necessary Land Registry form leading to removal of any entry relating to the Lease on the Buyer s registered title to the Property, but the Buyer s Solicitors will hold the documents to your order until completion takes place. 1.4 The Property must be completely cleared of all your furniture and personal effects. You must leave the Property in a clean and tidy condition and on completion of the sale you must hand all the keys of the Property to the estate agents. You must continue to observe the terms of the Lease up until the day of surrender. No fixtures and fittings may be removed from the Property without the Buyer s written permission. 1.5 In the event of you giving Notice of your wish for the Property to be sold in accordance with Condition 1.1, then following completion of the sale, the Buyer will pay you a bonus payment calculated in accordance with the following Schedule as a percentage of the original purchase price. Leaving Property in Year Percentage of Purchase Price 1 10% 2 8% 3 6% 4 4% 5 2% 6 or later 0% 17

18 This payment will only be made if you have complied with all the terms and conditions contained in the Agreement, the Lease and the Equity Release Plan. 2 Sale of Property - Purchase of Substituted Property 2.1 You may, by Notice in writing to the Buyer, request the Buyer to sell the Property and purchase a Substituted Property, in which case the Buyer will endeavour to sell the Property at the Open Market Value and to purchase the Substituted Property you have chosen. 2.2 The purchase price of the Substituted Property may not exceed its Open Market Value and unless the Buyer otherwise agrees, the title to the Substituted Property must be Freehold. It may have a Leasehold title, if: It is a long leasehold house having the characteristics of a freehold property; that is, the property is free standing and all repairing obligations are the direct responsibility of the lessee, i.e. the only major distinction from a freehold title is the agreement to pay the landlord a ground rent; or The property is a purpose-built flat or maisonette and the term has at least 80 years to run at a reasonable ground rent and service charge; and There is no prohibition against the assignment or underletting of the property; and The Buyer agrees, taking into account the state and condition of the proposed Substituted Property and/or the complex or area in which it is situated, the terms of the Lease and its unexpired term. The Buyer s agreement to the Substituted Property cannot be unreasonably withheld or delayed. However, if you and the Buyer are unable to agree whether the proposed property is a suitable Substituted Property having regard to the above criteria and good conveyancing practice as expressed in the Council of Mortgage Lenders Handbook, you may refer the matter to a Chartered Surveyor for consideration in which case Condition 6 will apply. 18

19 2.3 The purchase price of the Substituted Property will be met out of the sale price of the Property (after first deducting the Relevant Expenses). 2.4 Any apportionments of outgoings (for example council tax, water rate, gas and electricity charges, rent or any service charges) or any other payments made in connection with your use of the Property are to be paid by you. 2.5 The provisions of Condition 1.2, 1.3 and 1.4 will apply unless inconsistent with this Condition. 2.6 You are responsible for the payment of the excess of the Relevant Expenses in respect of the sale of the Property and the purchase of the Substituted Property over and above the Seller s Allowance. Completion of the sale and purchase shall not take place until you have paid this excess to the Buyer s Solicitors. You will have to pay all penalties that may arise if you fail to provide the excess in good time prior to the date of completion of such sale and purchase. 2.7 The net proceeds of sale of the Property after provision for the purchase price of the Substituted Property and payment of the Relevant Expenses (or the Seller s Allowance on account of the Relevant Expenses if less) will be paid to the Buyer. 2.8 You are responsible for the cost of any survey of a prospective Substituted Property save that the first such survey (which shall form part of the Relevant Expenses). 19

20 3 Retention If the Agreement states that a Retention will be made from the Purchase Price of the Property the following provisions will apply: At completion the Buyer s Solicitors will retain, as stakeholders, the amount of the Retention and place it on deposit until the Retention Works as listed in the Schedule to the Agreement have been completed to the satisfaction of the Buyer. 3.2 Upon satisfactory completion of the Retention Works the Buyer s Solicitors will release the Retention directly to you together with accrued interest whilst on deposit. If the works have not been satisfactorily completed within six (6) months from the Completion Date the Buyer is entitled (but not obliged) to engage workmen to enter the Property to complete the Retention Works. The cost of completing the Retention Works will be deducted from the Retention and any balance inclusive of accrued interest will be paid directly to you. If the cost to the Buyer exceeds the Retention plus accrued interest, then you must immediately pay the balance to the Buyer and if you do not do so, you will also have to pay Interest on the balance until actually paid and any further expense incurred by the Buyer in recovering such balance from you. 3.3 If, after the end of the six (6) months period, you have not started the Retention Works, and the Buyer has not opted to have the Retention Works carried out, the Buyer can give its Solicitors notice to repay the Retention to the Buyer together with all accrued interest. In this case your obligation to carry out the Retention Works will immediately cease but you will then have no right to receive the Retention or any part of it. 3.4 If the Buyer gives the notice referred to in Condition 3.3 above and accordingly the Retention and accrued interest is paid to the Buyer, this will not reduce your liability to keep the Property in a good state of repair and decoration, as provided for in the Lease. 4 Lease of Substituted Property On completion of the purchase of a Substituted Property you will be granted a Lease of the Substituted Property at an annual rent of a peppercorn. Shortly prior to completion both you and the Buyer will be asked to sign the new Lease of the Substituted Property. Your new Lease will be noted on the registered title of the Buyer in the same way as the Lease of the Property. The new Lease will be based on the Lease of the Property subject to any necessary amendments that relate to the Substituted Property. If you have instructed a Solicitor the new Lease 20

21 may be approved by him before completion of the purchase, such approval not to be unreasonably withheld or delayed. If you decide to engage your own Solicitor however it will be at your own expense. 5 Sale of Substituted Property You may, by Notice in writing to the Buyer, ask the Buyer to sell the Substituted Property. After the purchase of the first Substituted Property no further Substituted Property may be purchased but the first Substituted Property may be sold at your request at any time and the provisions of Condition 1 will then apply to the Substituted Property. The date for the purposes of calculating any bonus payment (Condition 1.5 refers) will remain the date of purchase of the Property and not the date of purchase of the Substituted Property. 6 Appointment of surveyor or valuer Any surveyor or valuer appointed whether by you or the Buyer: 6.1 to determine the Open Market Value of any property at any time, or 6.2 to determine whether a leasehold property is a suitable Substituted Property, or 6.3 otherwise to determine any other difference or dispute; will act as an expert and not as an arbitrator and his decision will be final and binding on you and the Buyer. The fees of the surveyor or valuer will be divided equally between you and the Buyer unless the surveyor or valuer otherwise directs. If you and the Buyer cannot reach agreement as to the appointment of a suitable surveyor or valuer, then either you or the Buyer can ask the President of the Royal Institution of Chartered Surveyors to appoint the surveyor or valuer. Both you and the Buyer can put your case in writing to the surveyor or valuer and he must state his reasons for his decision in writing. 7 Disposal of any right or interest in the Property You must not dispose of any interest in the Property or mortgage it. 8 Notices If you have to give notice to the Buyer for any reason under the terms of these Conditions, your notice will be validly given if it is posted by first class prepaid post addressed to the Buyer at the address appearing against the Buyer s name in the Agreement or such other address as the Buyer may from time to time notify you in writing. 21

22 If the Buyer has to give you notice for any reason then it will be validly served if hand delivered to you personally or left at the Property or if sent by first class prepaid post addressed to you at the Property, or your last known address if different. The Buyer can service Notice itself or by its agent. If the expression the Seller or the Tenant refers to more than one person then any notice which has to be served on you will be properly given if served upon the first named Seller or Tenant respectively and service in that manner until the Buyer receives notice of the death of the first named person will constitute full and proper service upon each of the Sellers or each of the Tenants as appropriate. On proof of the death of any Seller or Tenant the surviving Seller or Tenant (as appropriate) will be the only person recognised by the Buyer as having any interest in the Property or in the Lease as the case may be. Except as required by law no person other than the Seller or the Tenant respectively will be recognised by the Buyer as holding any interest in the Property or under the Lease (as appropriate) and the Buyer will not be bound by or recognise any other interest or any trust in the Property or under the Lease except that held by you as stated in the Agreement. 9 Abortive costs If, after giving notice of your wish for the Property to be sold, (whether or not you also intend to purchase a Substituted Property) (Conditions 1.1 and 2.1 refer) and you decide not to proceed, or if the Substituted Property is not satisfactory (Condition 2.2 refers) you will have to reimburse the Buyer all the Buyer s Solicitors costs and expenses, and all survey or valuation fees. If you do not pay these costs within one month of being requested to do so, the Buyer may charge Interest on any sum outstanding until paid. 10 Absence from the Property 10.1 If you intend to be away, or are obliged to be away from the Property (for example; through illness, holiday, or for any other reason), for a continuous period of more than one month, it is essential that you inform the Buyer in writing, explaining what arrangements will be made to preserve the security of the Property and for its continued insurance, maintenance and upkeep. If absence is due to illness, then you must also tell the Buyer the name and address of the person who will be responsible for your affairs. 22

23 10.2 If you remain absent from, or abandon, the Property for whatever reason for a continuous period of more than six (6) months, then the Buyer may treat the absence or abandonment as an irrevocable request for the Property to be sold, in which case the provisions of Condition 1 will apply except that the Buyer must also obtain an order of the Court authorising the sale. This is your safeguard against the Buyer s abuse of its powers under this Condition. 11 A carer or other third party living at the Property As provided in the Lease, you will be able to have someone live with you long term, such as a carer or a relative, provided that person signs a Waiver confirming that they will not seek to secure any legal interest in the Property. A copy of the required form of Waiver and Postponement is contained in Part D although this may have to be adapted for special circumstances. You should note that you must also sign the form of Indemnity (also contained in Part D) under which you will be required to indemnify the Buyer against any loss the Buyer may suffer if the terms of the Waiver are broken. Liability under the Indemnity extends to your personal representatives after your death. 12 Amendments No amendment to this Equity Release Plan is permitted. 23

24 PART D Equity Release Plan Supplemental Documentation CERTIFICATE OF EXISTENCE (Clause 2.6 of the Lease refers) CROWN EQUITY RELEASE LIMITED These details are required every June and December. In accordance with the terms of the Equity Release Plan, please list below the names of the current residents of your home. Please sign and date the card where indicated and return it in the pre-paid envelope provided. Thank you I confirm that the current residents of: - ADDRESS POST CODE Are the following: - Name 1 Name 2 Name 3 Name 4 YOUR NAME 24

25 SIGNED DATE 25

26 SOLICITOR S CERTIFICATE (This must only be completed by a Solicitor, Legal Executive or Licensed Conveyancer, in Private Practice) Name of Client(s) : Address of Property : ( the Property ) Proportion of Property being sold : 100% Purchase Price to be paid by a single payment of I hereby Certify: that I have taken reasonable steps to verify the identity of my Client(s) and that the signatures appearing upon the documents being expressed to be those of my Client(s) have been authenticated by me that I have explained the terms and effect of the above Equity Release Plan to my Client(s) and that they appeared to fully understand the nature and effect of the proposed transaction and the advice I have given to them and in particular I confirm I have drawn to their attention the following: - 1 They might wish to discuss the matter with their heirs/beneficiaries due to the reduction in the Estate proceeds upon death. 2 In the event of their early death(s) they would have received little benefit during their lifetime(s) but nonetheless their Estate(s) would be reduced due to the sale of the Property under the Equity Release Plan. 3 The amount of Income Support and Council Tax Benefits to which they may be entitled, either now or in the future, may be reduced as a result of proceeding with the Equity Release Plan. 4 The Lease provides them with security of tenure for the duration of their lifetime(s) but this is subject to their complying with the covenants and obligations both in the Agreement and in the Lease. Further they have stated that they wish to proceed with the Equity Release Plan as it appears to meet their requirements based on the documentation provided by Crown Equity Release Ltd or upon advice provided by an Independent Financial Adviser 26

27 and I have seen the replies as provided by my Client(s) to the Property Information Form (a copy of which is appended to this Equity Release Plan) and I have verified in so far as I am able from my inspection of the Deeds that the replies given are accurate. Having considered the above they have agreed to proceed with the Equity Release Plan. I confirm I am acting independently of Crown Equity Release Ltd and I have been instructed by. Solicitor s name: Date: Solicitor s signature: Solicitor s Firm: Reference: N.B. The Certificate equally applies even if you only advise a sole owner, so that the plural includes the singular. 27

28 INDEMNITY (to be signed by the Seller in appropriate circumstances Condition 11 refers) To: [ ] Dated: Dear Sir(s) Re: Indemnity in respect of occupancy by [ [ ] ( the Property ) ] ( the Occupier ) at In consideration of your consenting to my permitting the Occupier to occupy the Property in the capacity of a [carer/housekeeper/nurse/companion/etc] (which consent you have confirmed will continue until such time as the same is determined by you by written notice) I hereby agree to indemnify you and keep you indemnified from any loss of profit that may arise out of any delay in the sale of a Property following my death or following the determination of the Lease, if that occurs earlier and in respect of any additional expenses reasonably incurred by you in the removal of the Occupier from the Property following my death or the determination of the Lease. For this purpose I acknowledge and agree that loss of profit will be assessed at the rate of 4% above the base rate for the time being of NatWest Bank plc (or if no base rate is published at the time 12% per annum) upon the Open Market Value of the Property from the time that the Property would ordinarily be available for sale following my death or determination of the Lease but for the occupation of the Occupier until vacant possession of the Property is finally achieved by you, whether achieved by way of negotiation or Court Order for possession of the Property. I further acknowledge and agree that any additional expense that you incur, will include, in particular reimbursement on a full indemnity basis of your reasonable legal fees in respect of any Court proceedings, negotiations or correspondence with the Occupier in order to obtain possession. I expressly acknowledge and accept that any loss of profit or expense that you may suffer as envisaged by this indemnity will be a liability or my estate notwithstanding my death. SIGNED AS A DEED by the said 28

29 in the presence of: - Witness signature Witness name Occupation Witness address Waiver of Entitlement and Postponement of Occupational Rights (to be signed by the third party) (Condition 11 refers) Re: [ ] ( the Property ) I, [ ] temporarily residing at the Property HEREBY ACKNOWLEDGE AND AGREE as follows: - 1. I am temporarily residing with [ ] ( the Owner ) at the Property as a [carer/housekeeper/nurse/companion/etc] only. 2. I understand that the Owner has sold the Property to an investor ( the Buyer ) 3. In return for the sale of the freehold of the Property the Buyer has agreed to grant a Lease back to the Owner (solely), which will terminate upon the Owner s death. 4. I have no interest in the Property either at law or in equity. I have made no contribution towards the original purchase price of the Property nor have I contributed towards the maintenance, improvement or repair of the Property nor will I contribute towards the improvement of the Property or improve it in circumstances that may lead to my obtaining any share or interest in the Property. 5. My occupation of the Property is purely temporary, and I confirm that I will not seek to make any claim for a continued right of occupation or of a share in the equity of the Property, and further I agree to leave the Property and give up vacant possession of the same to the Buyer or the Buyer s agents upon the termination of the said Lease or (if earlier) when otherwise reasonably requested to do so by the Buyer (assuming that at the time I have remained in occupation). 6 I acknowledge and agree that I have no statutory rights nor any contractual rights that would permit me to remain in occupation of 29

30 the Property after I have been given a reasonable period of notice to leave either by the Owner or by the Buyer. 7. I further agree that in the event that the Lease is determined for whatever reason or if the Owner should cease to reside at the Property for whatever reason I will immediately leave the Property and give vacant possession to the Buyer or the Buyer s agents within a period of not more than 28 days of a written demand upon me to do so. 8. I acknowledge and agree that I will be responsible for any damage, loss or cost suffered by the Buyer by reason of my continued occupation of the Property and for the cost of any dilapidations or damage to the Property caused by me whether by my own acts or by any omission on my part, and I agree that any additional expense that the Buyer may incur including, in particular reimbursement on a full indemnity basis of the Buyer s reasonable legal costs in respect of any court proceedings, negotiations or correspondence with me in order to obtain possession will be my responsibility and will be paid by me to the Buyer or the Buyer s Solicitors within seven days of written demand. DATED: 200 Signed: I, [full name of solicitor], Solicitor with Messrs [firm name and address] confirm that I have explained the contents and implications of the above acknowledgement and agreement to the Occupier and I am satisfied that the Occupier accepts and understands the same, and has freely signed this acknowledgement and agreement in my presence. DATED: 200 Signed: Solicitor 30