A home reversion plan allows homeowners over the age of 65 to sell all or part of their home to an equity release provider in exchange for a cash lump sum.
You also retain the right to carry on living in your home rent free for the rest of your life or until you enter into permanent long-term care.
No rent or monthly repayments are usually required with this plan.
You normally receive less than the full market value for the share of your home sold (Typically between 35% and 60%). The amount you receive is discounted in exchange for a rent-free lifetime tenancy in the provider’s share of the property. The older you are when you start the plan, the higher the amount you will receive for the share sold.
The equity release provider benefits from any increase in the value of the share of your home sold. You will benefit from any rise in value of the share you have retained. Decreases in property values are also shared.
It is important to establish and understand what ownership model applies to any home reversion plan you consider as it may restrict your future options should your circumstances or objectives change.
This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.