Home reversion plans

What is a home reversion scheme?

A home reversion plan is a type of equity release scheme where part or all of the homeowners’ property is sold to the plan provider, in exchange for a tax-free lump sum. You’ll also receive a lifetime lease, which allows you to remain at the property for as long as you live or until you move into long-term care.

As you get to stay in your home, the provider of your home reversion equity release plan will usually pay less than the true full market value of your home. How much you receive will depend on factors such as your age and property value.

There is no interest charged and the percentage that’s sold remains fixed until the end of the home reversion plan agreement. At this point, which is usually when the last homeowner has passed away or moved into permanent care, the property will be sold and the proceeds split with the lender taking their percentage share. The remaining funds will be shared between the homeowner’s beneficiaries as inheritance.

This type of plan is very rare and Lifelink do NOT operate or advise on these types of plans, however if you still think this type of plan may be suitable for you, we can put you in contact with a suitable adviser.

If you are interested in finding out if an Equity Release mortgage is right for you call Lifelink on 01189 349800 and speak to one of our expert advisers, and receive your free consultation, no fees are payable unless you decide to proceed.