A home reversion plan allows you to sell of a part or all of your property at less than the market value in exchange for a tax free lump sum. In return you live in the property either rent-free or for a peppercorn rent, this means that you can live rent free in your property for the rest of your life – although you must agree to keep it maintained and insured. There are no monthly repayments to be made and when you die, the house is sold and the lender gets their share of the percentage agreed at the beginning of the contract.
You can usually sell between 20% and 60% of the market value of your home and it is available to those who are over 65. The sum you receive will depend, not only on the percentage sold but also on your age and on the home reversion provider.
A home reversion plan also allows you to stay in your home until you die or need to go into long term care. As you are selling a share of your home, there are no interest payments to consider. This makes it simpler to plan for the future as you will know exactly what portion is being left as inheritance.
You must consider that a home reversion plan, once committed to, cannot be easily undone – as you are selling part of your property.
PLEASE NOTE THIS SERVICE IS OFFERED BY REFERRAL TO A THIRD PARTY ONLY.