Home Reversion Plan
This involves the reversion company purchasing or arranging for someone else to purchase some or all of your property. You get the sale proceeds as a cash lump sum, although with some schemes the lump sum is invested to generate a regular income. Since the reversion company cannot re-sell the property until the earlier of your death or you move out, you will receive less than the market value for the percentage being purchased - typically 35% - 60%.
Generally speaking, the older you are when you start the scheme, the higher the percentage of the actual market value you'll receive for the portion of the property you are selling. When the property is sold, the reversion company receives the same percentage of the sale proceeds as that which they originally purchased. Your estate benefits from any rise in the value of any part of the property you may have retained.
The advice and / or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
The unbiased, whole of market advice we give can be paid by fee, commission or a combination of both. The precise amount of the fee will depend upon your circumstances and will be agreed upon by you and your adviser.
Your home may be repossessed if you do not keep up repayments on your mortgage. The FSA do not regulate some forms of Mortgage or Inheritance Tax Planning.
This is a Home Reversion Plan. To understand the features and risks, ask for a personalised illustration