Home reversion plan
Advantages
- The cash you release is tax free and can be spent achieving your goals.
- There are no monthly repayments to make as no interest is charged.
- You can typically raise a larger sum from your home with a reversion plan than would be available with a lifetime mortgage.
- You can benefit from any future increase in the value of your home from the proportion you retain.
- You know at the outset what share of your home you will be leaving to loved ones in your estate and so you are able to guarantee an inheritance with the remaining part of the property.
Disadvantages
- If you sell 100% of your home, there will be no property value to leave to your loved ones.
- There is no scope to return for further funds in the future if you sell all of your home.
- You don't receive the full market value for the share of the property you sell, so if you die shortly after taking out a home reversion plan the value of your estate will be significantly reduced.
- You may not have the option to reverse the plan, and if you are able to it would likely have to be purchased back from the home reversion lender at the full market value, which could be significantly more than you received.
- Typically only available to older homeowners.
I’d like flexible access to my money
If you’re looking for flexible access to your money, a drawdown lifetime mortgage may be a suitable solution for you, as you could release smaller amounts over time.
How much tax-free cash can you unlock from your home?
Use our free calculator to get a view of how much tax-free cash you could release to help you live your life, your way.
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A few things to think about
Equity release may involve a home reversion plan or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. You can read more about the different types of equity release plans here and if you want more detail we can provide you with a personalised illustration to explain exactly what equity release could mean for you and will outline the features and risks.
You must take financial advice before proceeding with equity release or with any type of mortgage and there may be other options which better suit your circumstances.
You will need to pay off any existing mortgage or secured loan that you have. You can use some of the money raised through equity release to do this.
Another consideration is that equity release interest is compounded, so you pay interest on interest. The money you release, plus the accrued interest is then repaid when you die or move into long-term care.
Equity release may have an impact on your entitlement to means-tested benefits now and in the future.
Whether you proceed with equity release or another type of mortgage, initial advice is free and without obligation. Only if your case completes would our advice fee of £1,995 be payable. Other lender and solicitor fees may apply.
Other mortgages
Think carefully before securing debts against your property. your property may be repossessed if you do not keep up repayments on your mortgage and any debt secured on it.
Age restrictions may apply, depending upon the lender chosen
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Ms Teale
What can the money I release from my home be used for?
The money that you release from your home can be used for lots of different things. You may want to:
- Pay off your current mortgage, reducing your committed monthly costs.
- Get the house shipshape, maybe it’s time for that new kitchen or bathroom.
- Go on your dream holiday, or plan a few smaller getaways.
- Provide a gift to a child or loved one, perhaps to help them onto the property ladder.
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In 2024, we helped over 490,000 people explore their later life lending options.
Multi award winning advice
You're talking to the people who know.
We have been providing advice to our customers for over 20 years and will talk you through all your options and explain the pros and cons of each so that you're fully informed.
Our service is about finding out whether any of the solutions we offer are a good fit for you, and only then will we find the best plan for your individual needs.
Our promise to you...
- You will be assigned a dedicated advisor who will guide you through the process from start to finish.
- We will only recommend a solution if it's suitable for you.
- We will search a range of plans from multiple lenders to find the best solution for you.
- If we recommend equity release, the plans meet the standards of the Equity Release Council.
- You will receive a bespoke recommendation document to read at your leisure.
