The home reversion providers were already closely linked through having property fund adviser Delancey as shareholder as well as Retirement Plus administering Milton’s home reversion plans and arranging its new business pipeline.
The merger will consolidate a significant force in the home reversion market by creating a company with joint assets of approaching £100 million and with a significant market share of the home reversion sector. The Retirement Plus business and product names will be unchanged. Milton Homes’ activities will rebrand under the new name of ‘Living Plus’.
It is anticipated that the merger will add momentum to the expansion of their joint product range but, more importantly, their capacity to introduce new products in the future will be considerably enhanced.
The merger is expected to be completed by the end of November subject to regulatory approval, with the new business expecting to increase its number of employees over the coming year.
Duncan Young, group chief executive, said: “This is a good time to consolidate our position in the market. We are extremely confident that the case for home reversion is being recognised by growing numbers of homeowners and their advisers.”
Colin Wagman, chairman of Milton Homes, added: “Since founding the business in June 2004 we have built up a significant market share in the highly specialised home reversion market. This merger, brings the known financial resources of Delancey together with Retirement Plus which has one of the most highly respected and well-established managements in this sector.
"We look forward to expanding our market presence rapidly and thereby working to satisfy the increasingly urgent need to support the UK’s ageing population with the flexible financial support that our products provide.”
