Home Reversion Plans
Home reversion plans involve selling part, or all, of your home to an investment
company (called a reversion company) which, in return, will give you a cash
lump sum or an income for life and sometimes the option of both.
You transfer legal ownership of your property to the home reversion company, while any
remaining portion that you have not sold is held in trust.
You can remain in your home for the rest of your life rent free (or for a
nominal rent, which is often referred to as a 'peppercorn rent').
When you die, if you have sold 100% of your property to the home reversion company, the
property will be sold and all of the proceeds will go to them. Otherwise, the
value of any portion of your home that you have not sold will pass to your
estate.
View the list of Equity Release Mortgages
Advantages of Home Reversion Plans
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You know what proportion of your home will be used at the outset.
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You can leave a fixed proportion of equity to your estate.
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Flexible home reversions now allow you to release the right amount for your
needs today, whilst having a guarantee of further cash releases if or when
required in the future.
Disadvantages of Home Reversion Plans
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You become a tenant in your home as you have to transfer ownership of your
property.
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You only benefit from any rises in house prices on the proportion you still
own.
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If you choose to end the plan early, charges may apply.
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Your tax position and eligibility for means tested benefits may be affected.
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