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.