Home Reversion

Home Reversion Plans is the act of selling all or a share of your home but continue to have the right to live in it for the rest of your life.

Equity Release - Home Reversion

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration

What is Equity Release through Home Reversion?

Calculations for Home reversion plans are dependent on your circumstances: Your Age, The value of your property, percentage of the property you wish to surrender and the rate offered by the provider.

If you which to release 20% of the value of your property, this can cost you from 60% to 75% of the value of your home. Plans are always calculated as percentage so if the property value increases the provider will receive the same share, but a higher value.

  • You must be at least 65 years old
  • The lump-sum is tax-free
  • No monthly payments (some providers charge a nominal rent of £12 per year)
  • You can sell all or a percentage of your home

What is Equity Release through Home Reversion?

The following examples are taken from www.which.co.uk who looked at the three main providers to take out a home reversion loan. This comparison was completed in February 2013
Provider A Provider B Provider C
Value of property £250,000 £250,000 £250,000
Age of youngest owner 65 65 65
Value to sell (20%) £50,000 (20%) £50,000 (20%) £50,000
Provider share of the property offered (72.3%) £180,750 (73.8%) £184,500 (59%) £147,500
Owners share (27.7%) £69,250 (26.2%) £65,500 (41%) £102,500

If the value of the property increases 1.5% each year for 20 years

New Value of property £336,714 £336,714 £336,714
Provider share of the property (72.3%) £243,444 (73.8%) £248,495 (59%) £198,661
Owners share (27.7%) £93,270 (26.2%) £88,219 (41%) £138,053

Home Reversion Providers

For home reversion, we act as introducers only

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