Home Reversion Equity Release Plans

Home Reversion Plans

With a Home Reversion Plan, you sell part or all of your property to a Home Reversion provider, in exchange for a cash sum or income. You are guaranteed occupancy for life. On your death, a proportion of the proceeds from the house sale revert back to the provider, hence the term ‘Home Reversion’.

For example, if your house is worth £200,000 (with no mortgage), a Home Reversion company could offer you £50,000 for a 50% share in your house. You now have this £50,000 to spend how you wish, and you can live in the house until you die. The Home Reversion company will take 50% of the proceeds from the house sale, the remainder going to your beneficiaries.

The advantages and disadvantages of Home Reversion plan:-

Home Reversion Advantages:-

The cash raised can be used how you wish.
You will not be required to pay monthly instalments.
You are guaranteed lifetime occupancy.
Some of the equity from the house is retained for beneficiaries.
No interest is payable.

Home Reversion Disadvantages:-

You lose ownership of your property, or part of it.
Income based schemes may restrict your choice of annuities.
You lose the right to any future growth in the part of the property that you have sold.
The cash raised, will not reflect the true value of the part of the property sold.
Moving home could prove difficult.
Increases in your capital or income could affect your rights to state benefits

YOUR EQUITY RELEASE