Home Reversion Plans
Home Reversion Plans are available from age 65-70 and the amount of money you can raise depends on how old you are, the value of your home and how much you choose to borrow.
With a home reversion plan you sell all or part of your home to a third party, normally a reversion company or an individual. In return you receive a regular income and/or a cash lump sum and you continue to live in your home for as long as you wish.
Once the scheme has started, the buyer of part, or all, of your home, benefits from any rise in its value. You or your beneficiaries benefit from any rise in the value of any part you have kept.
The Benefits of a Home Reversion Plan
- No monthly interest payments are required.
- You are guaranteed occupancy of your home for life.
- Part-reversion allows for a known percentage of the property value to be left to your heirs.
The Risks of a Home Reversion Plan
- The amount of cash or income raised will not reflect the true value of the property.
- You may not be able to move home due to the conditions of the plan.
- Any improvements made to the property will not benefit you financially.
- Increases in income or capital could result in disqualification from, or reduction of, some state benefits.
This is a home reversion plan, you should ask for a personalised illustration to understand its features and risks.