Home Reversion Plans

A Home Reversion Plan involves you selling part or all of your property in return for a cash lump sum and the right to remain in your property rent free until you die (or the death of the last survivor if it is a joint application) or if you move into long-term care or sheltered accommodation.

Unlike a Lifetime Mortgage the money you receive is not a loan so you do not pay interest on it. Both you and the reversion scheme company share in any increase in your property’s value, providing you have not exchanged 100% of its value.

Advantages of a home reversion plan

  • You are able to guarantee an inheritance.
  • There are no monthly repayments to make
  • The older you are, the more money you will be able to release with a home reversion plan.
  • You still benefit from any growth in the value of the percentage of the property that you still own.

Disadvantages of a home reversion plan

  • You do not receive the full market value of the share of the property you sell because the reversion company allows you to stay in the property rent free for the rest of your life, and will not get their money back for a number of years.
  • The reversion company owns a share of your property and will benefit from any increase in the value of your home.
  • Reversion plans cannot usually be reversed as you are selling your home.
  • Further advances are not guaranteed