Like a Lifetime Mortgage, a Home Reversion Plan is another method of Equity Release.
A Home Reversion Plan allows you to access all or part of the value of your property whilst, at the same time, retaining the right to remain in your property, rent free, for the remainder of your life.
With a Home Reversion product the provider will purchase all or part of your house taking into account your age and your health and will provide you with a tax free cash lump sum (or regular payments) and a lease for your lifetime.
To clarify, you will no longer own that proportion of your home - the Home Reversion provider will. Whereas with a Lifetime mortgage, you still own the property.
The percentage of your home that remains yours until the end of the plan and will always remain the same regardless of any future changes in its value. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.
As with a Lifetime Mortgage, the Home Reversion Plan can give a homeowner some certainty with regard to their financial future. With a Home Reversion Plan the client knows precisely what he or she has left as a proportion of the property’s value at the end of the plan. This allows for some to be ring-fenced for later use or to bequeath to the beneficiaries of their estate.
There are advantages and disadvantages to both types of plan, so it’s important for you to find out as much as you can, to get qualified advice and, if possible, to talk it over with your family to ensure you choose the best plan to fit your particular needs.
Which type of Equity Release Plan you choose will depend on your personal circumstances. As members of the Equity Release Council and Independent Mortgage Advisors, Mortgage Required are ideally placed to help you find the best solution for your particular needs now and into the future.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Best UK Mortgage Rates this Week
Yesterday
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
The UK mortgage market is seeing lenders withdraw deals and hike mortgage rates amid the escalation of conflict in Iran. This isn’t great news for borrowers, with the average rate for a two-year fixed deal sitting above 5%.
Statistics now show that those looking to purchase a property would have to save a deposit bigger than their annual gross pay.
Analysis from the Office for Budget Responsibility (OBR) shows that those looking to buy their first home could face a sharp increase if house prices follow the latest predictions, as Coventry Building Society suggests.
Around 40% of homes are cheaper to buy than rent
14 days ago
According to Zoopla, four in 10 homes are now cheaper to buy with a mortgage than to rent due to lower-cost mortgages - a sign that ownership is becoming more affordable.
World Sleep Day Tips
21 days ago
There are many people who struggle with getting a good night’s sleep. Having poor sleep hygiene can be the reason for bad sleep quality in adults. Sleep hygiene refers to habits that can help you sleep better.
Here we have shared some tips to create a healthier sleep.
What you need to know about remortgaging
23 days ago
If your current fixed rate is due to come to an end within the next six months, you will want to start thinking about the options available to you.
Nationwide is the first lender to allow mortgage deeds to be signed electronically and without the need for a witness.
More information
Trusted by
