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
Can I get a mortgage without a deposit?
6 days ago
If you are struggling to get over the hurdle of saving enough deposit due to being in a rental property, but wish to purchase your own home, you may be able to with a 100% mortgage. You will need to meet certain requirements and be financially stable.
Reasons to Remortgage your Home
19 Mar 2024
If you are looking at remortgaging your property but you are unsure whether it’s the right decision, we have listed five reasons why it might be for you.
Debt Awareness Week | Consolidating Debts
12 Mar 2024
As the cost-of-living crisis continues, many people across the UK are struggling financially, many of whom are finding it hard to get debt-free.
According to research by StepChange, there are five common reasons people don’t seek help and advice with debt concerns.
Friyay Rate Reviews
6 Feb 2024
Every Friday our experts search the market for the latest rates from every lender saving our clients some serious £'s!
Looking to Extend?
2 Feb 2024
Are you looking to extend your property? There are many benefits to adding an extension to your existing home, here are a few.
Why should you consider Equity Release?
30 Jan 2024
Put simply, Equity Release is where you can release equity (money) tied up in your home for any purpose you like. In this short article, we share some reasons why you may want to consider Equity Release.
How to cut your food shopping bill
17 Jan 2024
The team at Mortgage Required may not be able to lower the prices in your local supermarket, but we have come up with a list of tips to help you lower your food shopping bill.
Energy Saving Advice to Help Protect your Pocket
14 Jan 2024
Every year Big Energy Saving Week takes place to raise awareness about energy efficiency, reducing energy bills, and combating fuel poverty. Below are some ways you can get involved and hopefully make a saving!
More information
Trusted by
