Certainty of Ownership
Know exactly what percentage of your home you have sold and what you have retained.
Home Reversion Plans
Secure Your Financial Freedom by Selling a Portion of Your Home
Introduction to Home Reversion Plans
Home Reversion plans offer an alternative to traditional equity release options. This type of plan involves selling a part or all of your property to a home reversion provider in exchange for a lump sum or regular payments, while retaining the right to live in your home, rent-free, for the rest of your life.
Key Benefits of Home Reversion
Flexibility
Choose to receive a lump sum or regular payments to suit your financial needs.
No Monthly Repayments
There are no monthly repayments, as you are not borrowing money but selling a portion of your property.
Home Reversion Plans
Considerations Before Choosing Home Reversion
Below Market Value
You will not receive the full market value for the portion of the property you sell.
Impact on Inheritance
Reducing your property ownership means there will be less for your heirs.
Long-Term Decision
Once entered into, home reversion plans are difficult to reverse and can affect your financial flexibility.
Ideal Candidates for Home Reversion
This type of plan may be suitable for those who:
- Do not have dependents who wish to inherit the property.
- Need a lump sum or regular income to cover living expenses or care costs.
- Prefer the simplicity and certainty over the potential increase in property value.
Making the Decision
Home reversion is a significant decision that affects your current lifestyle and future financial health. It is crucial to consider your long-term needs and discuss with family and a financial advisor to ensure this fits your financial planning.
Read our equity release FAQs