Option C – Home Reversion Plan

Mrs Jones could borrow the £20,000 cash lump sum via a home reversion plan.

In exchange for a 20.3% (£44,663) share in the property, one home reversion company would provide Mrs Jones with a £20,000 cash lump sum and rent-free lifetime tenancy in their share of the property.

This is not a mortgage and no interest rates apply. No monthly repayments are required with this plan. The borrowing will be repaid when the house is sold either as a result of death or the need for permanent long-term care.

This plan does not have a further borrowing facility although in the future Mrs Jones could sell additional shares in the property to raise more funds.

As we cannot predict the future value of Mrs Jones property we also cannot confirm the exact cost of this arrangement to her estate. It is important to consider that property prices could be higher or lower than they are today, therefore the value of the lenders share in your property could also be higher or lower when the property is eventually sold.

This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.