Home Reversion Plans
With a home reversion plan you sell part or all of your home to a reversion plan company in exchange for a tax-free cash lump sum and, usually no monthly repayments to meet.
You stay in your home usually rent free for as long as you choose and may be able to guarantee an inheritance to your beneficiaries. Both you and the reversion scheme company share in any increase in your property's value, providing you have not exchanged 100% of its values.
Advantages of a home reversion plan
- The opportunity to leave an inheritance (if less than 100% of property value is used)
- Typically no monthly repayments to make
- You benefit from any increase in value of the percentage of the property that you still own
- Reversion plans may be available to those aged 55+
- Typically the older you are, the more money you will be able to release with a reversion plan
Disadvantages of a home reversion plan
- Typically, you do not receive the full market value of your property
- The reversion plan company owns a share of your home and will also benefit from any increase in value
- Reversion plans cannot usually be reversed as you are selling part of your home
- Further advances may not be available
Pacific Financial Services (North West) offers independent advice to help you choose the most suitable equity release solution for your retirement. Contact us now to get the advice that you need.
Home reversion plans and lifetime mortgages are complex products. To understand the features and risks, ask for a personalised illustration.
There will be a fee for Equity Release advice, equal to 1% of the amount of cash released. For example, if you release £25,000 on receipt of funds you will pay a fee of £25,000 x 1% = £250. You have the option to pay us a fee and receive any commission which we are paid by the lender/company that buys your home. If you choose this option, we estimate that the fee will be £750. We do offer a free of charge, no-obligation, initial consultation with an independent adviser so that you can find out how much cash you could release and whether a plan would be suitable for you. If you choose not to proceed no fee will be charged.
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