The clue is in the name: A Lifetime Loan is designed to last for as long as you remain living in your home or as long as you live.
The loan does not become repayable until one of the following ‘repayment events’ arises:
Sell the home
The loan is made against your specific home. If you sell your home (for example to downsize) the Lifetime Loan would become repayable immediately. You are required to give reasonable written notice if you propose to sell the property.
Death of the last surviving Nominated Resident
To give your representatives time and space to settle the affairs of your estate, the Lifetime Loan does not become repayable until 12 months after your death (or the death of the last surviving Nominated Resident where there are two).
Ceasing to reside by the last surviving Nominated Resident
‘Ceasing to reside’ is defined as 12 consecutive months of not residing in the property.
This usually arises in the context of moving to long term care but other situations are possible too. If you intend to leave your home for a period of more than 12 months but also intend to return to it you must let Seniors Money know.
Where there are two nominated residents and one ceases to reside in the home. the loan is not due for repayment until 12 months after the other nominated resident ceases to reside in the home.