Home Reversion Plan
What is a Home Reversion Plan?
This is a type of Equity Release that is typically less popular than the alternative, a lifetime mortgage. Under a home reversion plan, you will sell part or all your home to the home reversion lender in exchange for a lump sum of cash. You can then stay at your property for the rest of your life under a ‘Lifetime Lease’. This option is available to over 60’s only.
Features of a Home Reversion
- You receive a tax-free lump sum of cash that you can spend on what you want.
- There is no monthly repayment required.
- You have to be over the age of 60 to look into this option.
- You know at the outset what share of your home you will be leaving to loved ones in your estate. Therefore meaning the remaining inheritance is guaranteed.
- You are giving up part or all of the ownership of your home.
- In the event of you no longer wanting the plan anymore, you would have to pay the full market value for the share sold; which will be higher than the level of monies you initially sold it for.
- If you sell 100% of your home, you cannot come back and get more money in the future. In this case you will also have no inheritance to leave to beneficiaries.
- Should you pass away shortly after taking out a home reversion plan, the full amount borrowed, plus the further percentage purchase by the home reversion provider has to be repaid in full.
Is this option right for you?
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Other Equity Release Products Available
There are other Equity Release options that may suit your specific needs. Speak with one of our qualified Equity Release Advisors to discuss your options further.
Lump Sum
Lifetime Mortgage
The most popular form of Equity Release; a Lifetime Mortgage allows you to take a lump sum of tax-free cash from your home, whilst keeping 100% ownership.
Drawdown
Lifetime Mortgage
This variation of a Lifetime Mortgage allows you to access the money more flexibly rather than as a lump sum, allowing you to easily access funds in the future.
Interest Only
Lifetime Mortgage
With this option, you can choose to make regular monthly payments, to pay the interest in full or partially, allowing you to slow down or stop the roll up of interest entirely.
Buy To Let
Lifetime Mortgage
A specialist type of Equity Release which allows you to gain access to a lump sum of tax-free cash from a rental/investment or second home property.
Lump Sum
Lifetime Mortgage
The most popular form of Equity Release; a Lifetime Mortgage allows you to take a lump sum of tax-free cash from your home, whilst keeping 100% ownership.
Drawdown
Lifetime Mortgage
This variation of a Lifetime Mortgage allows you to access the money more flexibly rather than as a lump sum, allowing you to easily access funds in the future.
Interest Only
Lifetime Mortgage
With this option, you can choose to make regular monthly payments, to pay the interest in full or partially, allowing you to slow down or stop the roll up of interest entirely.
Buy To Let
Lifetime Mortgage
A specialist type of Equity Release which allows you to gain access to a lump sum of tax-free cash from a rental/investment or second home property.