Home Reversion Equity Release Plan

Equity Release Using Home Reversion – How Does It Work?

How to get the best deal on a home reversion plan

To get the best deal on a Home Reversion Equity Release Plan, it’s important to: 

  • Shop around – speak to a few different providers to compare deals 
  • Understand the value of your property – get a professional valuation 
  • Consider your needs – think about how much money you need and over what period of time
  • Be aware of the risks – remember that you are selling part of your property and will not be able to benefit from any future increase in its value 

Keep these factors in mind when shopping around for a home reversion plan to ensure you get the best deal possible. You can also contact us to speak to one of our experts who can help you compare home reversion plans and find the best deal for you. 

What is a home reversion plan?

A home reversion plan is a way of releasing equity from your property while you continue to live there. You sell all or part of your home to a home reversion provider in return for a lump sum or regular payments. The provider becomes the owner of your property or part of it, and you have the right to stay there for the rest of your life or until you sell the property. 

How does a home reversion plan work?

Home reversion providers will usually offer you a lump sum in return for a percentage share of your property. For example, if your home is worth £200,000 and you sell 50% of it to a home reversion provider, you will receive a lump sum of £100,000. The provider will then own half of your property and you will continue to live there, rent-free. 

You can choose to sell all of your property to the provider or just a percentage share. The amount of money you receive will depend on the percentage share you sell and the value of your property. 

How is a home reversion calculated?  

There are several factors that affect how much you will get from a home reversion plan, including: 

  • The age of the youngest homeowner 
  • The value of your property 
  • The location of your property 
  • The type of property you have 
  • Percentage of the property to be sold 
  • The health and lifestyle you have