In the UK home reversion schemes are designed for home owners who wish to release the maximum amount of equity within their property. Unlike an equity release lifetime mortgage schemes where you retain full ownership of your property using a home reversion plan you sell some or all of your property to the plan provider.
home reversion schemes allow homeowners to release a lump sum from their property, because there is no interest and no concerns over future house prices.
Home Reversion Plan
The amount of equity you can release under a home reversion plan will depend upon your age, and the value of your property.
With a home reversion scheme, you sell all or part of your property to the plan provider. It is the home reversion scheme provider that takes the risk on future house prices. If you sell 30% of your property to the home reversion plan provider, the home reversion plan provider will be entitled to 30% of the sale price when your property is eventually sold. If you sell 100% of your property to the home reversion scheme provider, the home reversion plan provider will be entitled to 100% of the sale price when your property is eventually sold.
You will not be charged any rent but you will be responsible for maintaining the property and paying for any repairs that are required.
