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Home Reversion Plans

 

Pros and cons

 

Some things you need to consider...

 

Pros:

  • You can usually raise more cash than with a Lifetime Mortgage.
  • By retaining a percentage ownership in your home, you know that you can leave it as an inheritance.
  • If you only release part of the equity you know that you may be able to release further amounts in the future, capitalising on any increase in the value of your property.
  • There are no regular payments to be made.

Cons:

  • You will not benefit from any appreciation in the value of the proportion of the home that you sell.
  • You will no longer own all of your home.
  • As the discount at which the plan is arranged is based on your age and life expectancy, a Home Reversion plan will generally be poor value if you die or move into care early.
  • If property values decrease, this will reduce the amount you could potentially release in the future, if you had released less than 100% at the start of the plan.

 

    This may involve an Equity Release product. To understand the features and risks please ask for a personalised illustration.