The home reversion provider revealed that this will be the first of a new monthly series of sales aids designed to support advisers in the equity release market.
In the UK, property ownership has two components: legal ownership and beneficial Interest.
The legal owner will be registered at the Land Registry and can be viewed electronically, while the beneficial interest confers all the financial benefits or interest relating to the property.
In most domestic situations, the person who is the legal owner of the property will also own the beneficial interest however it is possible to split the two.
Bridgewater revealed that last year, many of its equity release customers chose to take a home reversion plan to guarantee that a percentage of their property’s value passes to their estate after death or if they leave and move into long-term care.
Under its plans, customers get security of tenure and certainty over the percentage of the property they retain as well as flexibility if further releases are required at any point in the future.
In order to achieve these benefits, once customers retain a percentage of their property, Bridgewater splits the legal ownership and beneficial interest.
Peter Welch, head of sales and distribution at Bridgewater Equity Release, said that some equity release customers choose a lifetime mortgage when a home reversion plan may better suit their needs.
“This is because they don’t understand why Bridgewater splits legal and beneficial interest when setting up a home reversion plan,” he said.
“We hope that advisers will find this sales aid particularly useful when discussing home reversions, but also other equity release solutions, with both clients and their families.”
