Residents in the home
A Lifetime Loan is primarily intended for singles or couples living without other people in residence with them. Life can be more complicated than that, so you need to know the implications if there are other residents in the home.
The Lifetime Loan allows a maximum of two residents to be classed as ‘Nominated Residents’:
- Only Nominated Residents have the right to live in the property for as long as they live or as long as they wish without repaying the loan.
- Where there is only one Nominated Resident, he or she must be at least 60 years of age.
- Where there are two Nominated Residents, the younger of you must be at least 60 years of age.
Friends or family may live with you but if they are not Nominated Residents they will have no right under the Lifetime Loan to remain in the property after you (the second of you where there are two Nominated Residents) die or cease to reside in your property.
Depending on the age and circumstances of these other residents, it may not be possible to get a Lifetime Loan on the property or these other residents may be required to obtain their own independent legal advice and sign a waiver acknowledging the relevant loan conditions.
The Nominated Residents are obliged to complete an Annual Questionnaire to inform the lender of any changes in circumstances which might affect the loan. This includes a question on whether there are any changes in who is resident in the property.
It is a condition of the Lifetime Loan that you do not lease all or part of your property to another party without the lender’s prior approval.