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Home Reversion Plan

With a home reversion plan, you sell all or part of your home at the outset with a guarantee that you will be able to remain living in it until you die or move into long term care.

Because of this guarantee, you will not receive the full market value of your home as the provider may have a very long wait before they are able to sell it. If you choose to sell all of your home, you will usually receive between 30% and 60% of its value, depending on your age.

Most providers will either offer rent-free living, or there will be a nominal rent of, for example, £1 per month.

Therefore, if you have sold 25% of your home, for example, you know that on death or when you move into long-term care, 75% of the sale proceeds will be passed to you or to your estate. You need to be aware that the uncertainty in this example is that you would not know what the future sale proceeds are going to be as this depends on the housing market at that time.

There are a number of different types of home reversion plan. We recommend that you speak with one of our specialist equity release advisers to find out more about the different options available to you.

This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.