HOME REVERSION PLANS
Home reversion plans are only available to you if you are older, typically over the age of 55.
They allow you to release equity (cash) tied up in your home
The products have no fixed term and allow you to stay in your home for the rest of your life, unless you have to move into long term care.
This is a Home Reversion plan.
To understand the features and risks, ask for a personalised illustration.
With Home reversion plans, you sell all or part of your home in return for a cash lump sum, a regular income, or both. Your home, or part of it you sell, now belongs to someone else, but you are allowed to carry on living in it until you die or move out.
How does it work?
A company either buys your home or part of it, or arranges for someone else to do so. In return you get a cash lump sum or an income. If you get a cash lump sum you may decide to invest this yourself to provide an income.
You will usually get between 20% and 60% of the market value of your home because the buyer allow you to carry on living there and cannot sell it until you die or move into care. The older you are when you start the scheme, the higher the percentage you will get.
You get the right to carry on living in the home under a lease. The terms of the lease will vary depending on which reversion you choose. You usually pay a nominal rent of say £1 each month, or you may have the choice of paying a higher rent in return for more money from the sale.
Taking out an Equity Release product may affect your ability to claim social security benefits, and may also affect your tax (including any council tax benefits) position. If you are worried about this and need further advice you should contact HM Revenue & Customs, The Pension Service, your local Citizens Advice Bureau or your IFA.
A Home Reversion Plan reduces the value of your estate, and the amount that will go to your beneficiaries on your death.
A Home Reversion Plan involves selling all/part of your home. There may be more suitable methods of raising the funds you need.
You can choose how we are paid for Home Reversion Plans: pay a fee, usually £2,000, or we can accept commission from the lender.