What is Home Reversion?

Home Reversion schemes are a form of Equity release, they allow you to sell all, or part of your home to a finance company in return for a cash lump sum or to provide a monthly income.

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.