A Home Reversion plans is a form of equity release where you sell part or all of your home to a equity release provider in exchange for a tax-free cash lump sum. You also gain a guaranteed lifetime lease with no monthly repayments to meet.
As with all equity release plans we recommend, you can stay in your home rent free for as long as you choose and are able to guarantee an inheritance to your beneficiaries. Both you and the equity release provider share in any increase in your property’s value, providing you have not exchanged 100% of its value.
There are two types of Home Reversion Plans. The first, which we call ‘discounted home reversions’ does not pay you the full market value for the share in your property you sell. They simply buy a share of your property for less than the market value and recoup the market value of that share when the property is ultimately sold.
With the second type of home reversion plan, which we call ‘non-discounted home reversions’ the provider does pay you the full market value for the share of your property sold to them. In exchange, their share in your property will increase each year by a percentage which is specified at the outset, up to an agreed maximum share.
Typically, the minimum age for a home reversion plan is 65 although they can be available to younger ages. Please ask us for details.
Why not check out our equity release calculator and find out how much cash you could release from your home.
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