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
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.
Almost half of young adults are worried about their credit history stopping them from renting or buying a property, according to data from Loqbox
How to add value to your property this summer
12 days ago
Different seasons can have a noticeable effect on property prices.
Research from Zoopla shows that spending out on certain features can fetch up to £29,000 during the summer months.
Monday 22nd June saw Keir Starmer resign as Prime Minister and Labour leader. The resignation does not directly impact mortgage rates, as changes were taking place before this announcement. However, it could influence mortgage rates indirectly through financial markets and future government policies.
Homebuying reform to cut homebuying times by around four weeks, and save first-time buyers around £650, says the government.
Buying your first home is a huge milestone, but it can also be a complex process. There are several factors a first-time buyer should consider before making an offer on a property, including understanding the difference between leasehold and freehold and checking council tax bands.
We’ve detailed some questions you can ask your estate agent to help you make an informed decision.
Signs it's time to remortgage
21 days ago
Remortgaging means switching to a new mortgage deal. This will either be with your current lender or a new one.
Getting advice and moving to a new deal when the time is right can mean lower monthly mortgage payments, better interest rates, or releasing equity from your property.
Here are some signs it may be time to remortgage.
According to Nationwide Building Society’s latest House Price Index, house prices dropped 0.6% month on month in May – the first monthly decline this year.
More information
Trusted by
