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.
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