Equity Release - Home Reversion Plans

A home reversion plan allows you to release a percentage of the value of your home. You effectively exchange a percentage of the value in your property to achieve the amount you wish to raise.

Your home will be valued by a surveyor working with the provider. You will not receive the full market value of your home as the lender is offering you a tax-free lump sum and is allowing you to live in your home rent free.

With this plan, your age is a primary factor in determining the amount you will receive for the share you exchange. Other factors such as your health, gender and the value of your property can also be taken into consideration.

The plan must be paid off on the sale of your house, therefore this plan may be unsuitable for anyone wishing to leave a complete property (as opposed to the monetary value of the property) as an inheritance for their next of kin.

Home reversion plans will typically raise greater sums at younger ages than you would receive from a lifetime mortgage.