Home Reversion Plans
A home reversion plan allows homeowners over the age of 65 to sell all or part of their home to a reversion company in exchange for a cash lump sum, an income or both.
You also retain the right to carry on living in your home rent free for the rest of your life or until you enter into long-term care. No monthly payments are required with this plan.
You will normally receive less than the full market value for the share of your home sold. (Typically between 35% and 60%). The amount you receive is discounted in exchange for a rent-free lifetime tenancy in the provider’s share of the property. The older you are when you start the plan, the higher the amount you will receive for the share sold.
Once the plan has started, the equity release provider benefits from any increase in the value of your home. If you have only sold part of your property, you will benefit from any rise in the value of the part you have not sold.
Important factors to consider:
- Releasing equity from your home will reduce the value of your estate, affecting the amount of inheritance you will be able to leave
- Releasing equity may affect your tax position and entitlement to any means tested state benefits
- Assess the alternatives to releasing equity from your property - e.g. downsizing
- Future property prices may be higher or lower than they are today
- Obtain a second opinion, discuss your plans with family or a trusted friend
This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.