Home Reversion Plans

Secure Your Financial Freedom by Selling a Portion of Your Home

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Introduction to Home Reversion Plans

Home Reversion plans offer an alternative to traditional equity release options. This type of plan involves selling a part or all of your property to a home reversion provider in exchange for a lump sum or regular payments, while retaining the right to live in your home, rent-free, for the rest of your life.

How Home Reversion Works

With a Home Reversion plan, you agree to sell a fixed share of your property to a provider for a price that is typically below market value. The percentage you retain in your home will always stay the same regardless of changes in property values, and you can continue living in your home rent-free until you pass away or move into permanent care. After your house is sold, the proceeds are split according to the remaining ownership shares.

Key Benefits of Home Reversion

Know exactly what percentage of your home you have sold and what you have retained.

Choose to receive a lump sum or regular payments to suit your financial needs.

There are no monthly repayments, as you are not borrowing money but selling a portion of your property.

Home Reversion Plans

Considerations Before Choosing Home Reversion

Below Market Value

You will not receive the full market value for the portion of the property you sell.

Impact on Inheritance

Reducing your property ownership means there will be less for your heirs.

Long-Term Decision

Once entered into, home reversion plans are difficult to reverse and can affect your financial flexibility.

Ideal Candidates for Home Reversion

This type of plan may be suitable for those who:

Do not have dependents who wish to inherit the property.

Need a lump sum or regular income to cover living expenses or care costs.

Prefer the simplicity and certainty over the potential increase in property value.

Making the Decision

Home reversion is a significant decision that affects your current lifestyle and future financial health. It is crucial to consider your long-term needs and discuss with family and a financial advisor to ensure this fits your financial planning.

Next Steps

If you are considering a Home Reversion plan and need more information or advice, our team at Equity Release Mortgage is here to help. Contact us today to discuss whether this is the right option for you and how you can secure your financial future with a Home Reversion plan.

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