Home Reversion Plans

How They Work

A home reversion company buys or arranges for someone else to buy part or all of your home.

You get the sale proceeds as a cash lump sum, an income or both. you can invest the cash lump sum yourself as another way of providing an income - some schemes can do this for you.

You will normally be paid less than the full market value of your home, typically between 35% and 60%, because the buyer cannot resell the property until you die or until you move out (perhaps into a care home).

The older you are when you start the scheme, the higher is the percentage you will get.

The minimum for these schemes is usually higher than for lifetime mortgages.

You will also get a lease giving you the right to carry on living in your home for the rest of your life (or until you no longer need it). It's important that you check the terms and conditions of the lease to make sure you understand what you have to do.

Usually you do not pay rent or if you do, it is a token amount, but with some schemes you can pay a higher rent in return for more money from the sale.

Once the scheme has started, the buyer of your home home benefits from any rise in its value. However if you have only sold part of your home, you benefit from any rise in the value of the part you have kept.

To understand the features and risks, please ask for a Personalised Illustration.