Cover TitleCover Sub Title

IMAGE

You should read this with your personalised illustration.

Equity release from AvivaTariff of chargesA guide to the charges for our lifetime mortgages

AV493009_PF01459_1020.indd 1 10/5/20 6:22 PM

2

This booklet gives you a complete list and description of the charges on your lifetime mortgage.

Please read it together with the other product information your adviser has given you. It is important to consider the benefits and risks before deciding whether a lifetime mortgage is right for you.

The charges reflect our reasonable costs for administering your lifetime mortgage. We’ll review them from time to time and may increase or decrease them proportionately if our administration costs have changed. We tell our customers about any changes at least 30 days before they take effect. We’ll also send customers a new copy of the tariff of charges. You can find details of the interest rate you will be charged in your personalised illustration.

Learn about the charges

AV493009_PF01459_1020.indd 2 10/5/20 6:22 PM

3

Arrangement feeThis covers the cost of setting up the lifetime mortgage and includes all our legal fees and disbursements. You can find details of the arrangement fee in your personalised illustration.

Valuation feeWe’ll arrange for your property to be independently valued.

You’re not required to pay an upfront valuation fee if the estimated value of your property is up to and including £5 million.

You can find details of the valuation fee for properties over £5 million in your personalised illustration.

For some offshore islands, a fee will be charged to cover the cost of travel, including additional travel time, to these properties. We’ll tell you of any cost at the time of your application if this applies.

Re-inspection feeWe’ll charge £60 if we need to get the valuer to inspect your home again. The £60 includes an administration fee of £15.

Your legal feesYou must appoint a legal adviser to act for you and pay their fees.

We’ve shown the fees for solicitors who are members of The National Solicitors’ Network. You can contact them on 0845 389 0380 to receive information about solicitors local to you on their panel.

Description of chargesMembers of The National

Solicitors NetworkEstimated fee for a standard case £480 plus VAT

In some cases, you may have to pay extra charges.

Extra charges

Where your home is unregistered

£100 plus VAT charged where using a network solicitor

Where your home is leasehold£100 plus VAT charged where using a network solicitor

Home visit (where available)£75 plus VAT charged where using a network solicitor

Where your home has complex title problems

Fees – we will tell you if this applies to you

Setting up your lifetime mortgageThe main charges for setting up your lifetime mortgage are an arrangement fee, a valuation fee and your own legal costs.

AV493009_PF01459_1020.indd 3 10/5/20 6:22 PM

4

Additional borrowingYou may be able to apply to borrow more money. We’ll treat this as a new application.

1. Application feeYou must pay an application fee of £75. We’ll add this to your loan amount.

2. Cost of revaluing your homeWe’ll arrange for your property to be independently revalued.

You’re not required to pay an upfront valuation fee if the estimated value of your property is up to and including £5 million.

You can find details of the valuation fee for properties over £5 million in your personalised illustration.

Re-inspection feeWe’ll charge £60 if we need to inspect your home again, which includes a £15 administration fee.

3. Legal feesYou won’t have to instruct a legal adviser when you apply for additional borrowing.

Change of ownershipYou must tell us if you want to add or remove someone from the lifetime mortgage.

1. Application feeYou must pay an application fee of £165.

2. Cost of revaluing your home You may need to have your property revalued. We base this fee on the estimated value of your home, as shown in the table below.

Estimated value of your home Fee£75,000 – £150,000 £90

£150,001 – £300,000 £128

£300,001 – £500,000 £200

£500,001 – £750,000 £366

£750,001 – £1,000,000 £513

£1,000,001 – £1,100,000 £624

£1,100,001 – £1,200,000 £763

£1,200,001 – £1,500,000 £867

£1,500,001 – £2,000,000 £971

Over £2,000,000 Available on request

3. Legal feesYou must appoint a legal adviser to act on your behalf and you will be responsible for paying their fees. We will instruct our own legal adviser to act on our behalf and we will pay our own legal fees.

During your lifetime mortgageWays to payYou can pay the fees by:

● debit card

● credit card

● same day electronic transfer.

Contacting usIf you have any questions, please talk to your financial adviser.

Alternatively, you can call us on 0800 158 4177. Please bear in mind that we can only answer questions about Aviva products. We’re open Monday to Friday 8am to 8pm Saturday 9am to 5pm Sunday 10am to 4pm Closed bank holidays

AV493009_PF01459_1020.indd 4 10/5/20 6:22 PM

5

Moving propertyYou can apply to transfer your lifetime mortgage to a new property if you move home. The new property must meet our current lending criteria. If you move to a property that’s worth less than your current home you may need to repay part of your loan and the interest you owe.

1. Application feeYou must pay an application fee of £165.

2. Cost of valuing the new propertyWe’ll arrange for the new property to be independently valued. The fee will be based on the estimated value of the property as shown in the table below which includes VAT and an administration fee of £20.

Estimated value of your home Fee£75,000 – £150,000 £153

£150,001 – £300,000 £210

£300,001 – £500,000 £295

£500,001 – £750,000 £480

£750,001 – £1,000,000 £685

£1,000,001 – £1,100,000 £920

£1,100,001 – £1,200,000 £1,120

£1,200,001 – £1,500,000 £1,270

£1,500,001 – £2,000,000 £1,420

Over £2,000,000 please ask us about this

For some offshore islands, we’ll charge an additional fee to cover the cost of travel (including extra travel time) to these properties. If that affects you, we’ll tell you of any additional cost when you apply.

3. Re-inspection feeWe’ll charge £60 if we need to inspect your home again, which includes a £15 administration fee.

4. Legal feesYou must appoint a legal adviser to act on your behalf and you will be responsible for paying their fees. We will appoint a legal adviser to act on our behalf and you will be responsible for paying their fees.

Remote valuationsDue to Covid-19, where it’s not safe to instruct a physical valuation you may have the option to request a remote valuation. A remote valuation is an inspection which takes place using information available through online platforms and therefore the valuer does not physically visit the property. Please speak to us or your financial adviser to understand if, in your circumstances, a remote valuation is available.

We don’t charge an upfront physical or remote valuation fee on initial lending or additional borrowing.

The below table shows the fees for remote valuations on change of ownership and moving property requests (including VAT and an administration fee of £20):

Estimated value of your home

Change of ownership

Fee

Moving property

Fee £75,000 – £150,000 £79.80 £99.80

£150,001 – £300,000 £114 £134

£300,001 – £500,000 £165 £185

£500,001 – £750,000 £276 £296

£750,001 – £1,000,000 £399 £419

We don’t offer remote valuations on estimated property values of over £1 million inside the M25 and £750,000 elsewhere. Please speak to us for further details.

Repaying all of your lifetime mortgage early.This lifetime mortgage is designed to last for the rest of your life or until you, and if you have a joint mortgage, the other joint borrower, need to move into long-term care, as defined in our terms and conditions at the time.

Can I repay my lifetime mortgage in full, before I die or go into long-term care?

Your lifetime mortgage isn’t designed to be repaid in full before you die or go into long-term care. If you want to repay it early, and the exclusions below don’t apply, you could face an early repayment charge. If you intend to pay off your lifetime mortgage in full, you should discuss this with your financial adviser. If you decide to go ahead, the following will apply to any early repayment charge you may have to pay:

● the early repayment charge will never be more than 25% of your initial loan amount plus 25% of any additional amounts you’ve borrowed.

● if you take the Lifestyle Flexible Option and want to repay it, you may also have to pay an early repayment charge of up to 25% on each amount you’ve taken from your cash reserve.

● If you applied for your lifetime mortgage or any additional borrowing before 18 April 2011, you’ll also have to pay a £35 administration fee for each loan you took out. This doesn’t apply to any money you’ve borrowed from your cash reserve.

AV493009_PF01459_1020.indd 5 10/5/20 6:22 PM

6

Circumstances in which an early repayment charge doesn’t apply;

● You have a joint lifetime mortgage and you repay it within three years of the date that your partner dies or from the date that you notify us that one of you needs long-term care. This only applies to those who applied for their lifetime mortgage on or after 28 April 2014.

● When you – and all borrowers on the lifetime mortgage have either died or moved into long-term care.

● You move property and transfer your lifetime mortgage to the new property. The property that the lifetime mortgage is being transferred to must meet our current lending criteria.

● You want to move and apply to transfer your lifetime mortgage to a new property that doesn’t meet our current lending criteria. If you’re eligible for downsizing protection you can repay the lifetime mortgage with no early repayment charge. This feature is available on lifetime mortgages applied for on or after 8 April 2019. Please see your terms and conditions for more information.

● You want to sell part of your property and we have given you consent to do this.

● You’d like someone to move into the property with you as a joint borrower and for the lifetime mortgage to be repayable when the last person dies or goes into long-term care (and we have given you our consent).

● If you’re making voluntary partial repayments. This facility is available on lifetime mortgages applied for on or after 28 April 2014. Please see your terms and conditions for more information.

The value of yields on gilts (UK government bonds) will have an impact. The gilt yield at the time of redemption has a direct relation to whether an early repayment charge is payable. Your financial adviser will be able to explain this to you and it is also described in your terms and conditions.

Voluntary partial repayments

If you applied for your lifetime mortgage on or after 28 April 2014 you also have the option to make voluntary partial repayments if you’d like to. The maximum you can repay each year is 10% of the total of the initial loan, any additional borrowing and cash reserve releases, excluding any accrued interest.

AV493009_PF01459_1020.indd 6 10/5/20 6:22 PM

7

Your lifetime mortgage and the interest on it must be repaid in full when:

● the last surviving borrower dies, or

● the last surviving borrower leaves the property permanently because they need long-term care, as defined in our terms and conditions booklet, or

● both borrowers leave the property permanently because they need long-term care.

You will not have to pay an early repayment charge in these circumstances, however repaying your loan in full before the above could mean you have to pay early repayment charges. Further information can be found in ‘A guide to our lifetime mortgages’ but please refer to your terms and conditions for full details.

If you applied for your lifetime mortgage before 18 April 2011 and it ends due to any of the reasons above we will charge you an administration fee of £125.

When your lifetime mortgage ends

AV493009_PF01459_1020.indd 7 10/5/20 6:22 PM

8PF01459 10/2020 © Aviva plc

Aviva Equity Release UK Limited. Registered in England No 3286484. Aviva, Wellington Row, York, YO90 1WR. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number 310433. aviva.co.uk

Where to find more informationThree ways to find out more information about Equity Release options:

Braille, large font and audio materialYou can order this document in braille, large font or audio.

Just call 0800 068 6800 or email contactus@aviva.com and tell us:

● the format you want

● your name and address

● the code of this document, PF01459 10/2020.

Our opening hours are Monday to Friday 8am to 8pm, Saturday 8.30am to 5pm and Sunday 10am to 4pm. Calls may be monitored and will be recorded.

1. Contact our support team on 0800 158 4177 Monday to Friday 9am to 5pm

Closed bank holidays

2. www.aviva.co.uk3. Contact your financial adviser

AV493009_PF01459_1020.indd 8 10/5/20 6:22 PM