A home reversion scheme is where a consumer agrees to sell a share of their home in return for a set price.

The consumer does not borrow against the value of their home but instead sells a share of their home.

Difference between equity release and Home Reversion:

Home reversion is the less-common form of equity release. Available only to people over a certain age (55 years), it involves selling a portion of your property in return for either a cash lump sum, a fixed income for the rest of your life, or a combination of both.

Key features of Home Reversion:

  • You agree to sell a percentage of your home now for a lump sum
  • You can boost the lump sum available by option to pay a monthly figure
  • You continue to life in the same house for the rest of your life or until you enter a Nursing Home
  • The lump sum you get depends on the value of the property, the % you sell but also the age of the youngest homeowner. The younger you are the longer you will stay in your house, which reduces the lump sum day 1
  • Home reversion is not a loan and you do not have to pay back the money you receive. You have an obligation to insure and maintain the property. The % share sold today will be the % share given to your Home Reversion partner when the property is eventually sold

For more information:

First Choice Financial Services DAC can determine your suitability for this product.

Finance & Banking Consultant | Debt Management Services

Purchasing this product may negatively impact on your ability to fund future needs.

The money you receive may be much less than the actual market value of the share in your home.

Releasing equity from your home may impact your ability to claim means tested social welfare benefits.

Failure to insure your home and/or make monthly payments in line with your home reversion agreement may result in the dilution of your share in the home and you may be at risk of losing your home.