Common Questions

Frequently asked questions about the Sentinel Lifetime Loan…

Because Sentinel’s Lifetime Loan is probably a new concept to you and your family, you may have questions about the Sentinel Lifetime Loan, and how it works.  

Below are a number of questions we imagine you may be asking, however for more detailed information please refer to  our brochure, or contact us here at Sentinel on 0800 488 740. 

How much will I be able to leave my Family ?

This will depend on how much you decide to borrow, interest rates, house price inflation and how long the loan is in force.  You can use the calculator on this website to estimate how much equity will remain in your home, at different house growth rates, over time.

Can I pay off all or part of the loan at any time ?

Although the loan is intended to be lifelong and you are not required to make any payments until the end, you can choose to repay all or part of the loan at any time.  As long as your loan is on a variable interest rate no early repayment fees will be charged.

Can I transfer my loan to my new house if I decide to move ?

The transfer of a Sentinel Lifetime Loan from one property to another is dependent on:

– the sale price of the existing property,
– the lessor of the buy price and value from a registered valuation (excluding chattels) of the new property,
– the age of the youngest resident at the time of transfer
– the balance of the loan (including all interest that has been added to the loan) at the time of transfer,
– the type of the new property
– a title search.

It is important to understand that there may be instances where the transfer may not be possible.

The ability to transfer a Sentinel Lifetime Loan to a Licence to Occupy Retirement Village unit is governed by the village management and the amount if allowably is very limited.

It is important to take into account real estate fees, moving costs and solicitor’s fees when calculating how much it will cost to move.

What happens to my home when I die or move into permanent long-term care?

Usually, the loan is repaid from the sale proceeds of your home.   The loan becomes repayable when you move permanently from your home – usually when you pass away or move into long term care. 

Can I borrow more later if I need it ?

You can apply to borrow more at any time. The amount that you may be entitled to borrow will depend on whether you have already drawn your full entitlement.

Any entitlement to further funds, over and above the original approved loan, is based on the age of the youngest resident at the time of applying and the property value at that time.  The current loan balance including accumulated interest is deducted from the entitlement to determine any additional funds that may be available. 

Who owns my home?

You always own your home, and can live there for as long as you choose.

 

For further details and in-depth answers to your questions about the Sentinel Lifetime Loan please contact us on 0800 488 740.  We’re always happy to help.