Home Reversion Plans
With a home reversion plan you sell part, or all, of
your home in return for a cash lump sum. Unlike a
lifetime mortgage, this is a sale, not a loan. Because
you can stay in your home, rent-free until you die
or go into long-term care, you will receive less than
the full market value for the share of the property
What are the benefits?
You receive a cash lump sum to spend on whatever
- You can sell part or all of your home.
- You continue to live in your home rent-free until you
die or go into long-term care
- Any part of the property not sold can be left as an
inheritance to your estate
- If you die or go into long-term care during a set period providers offer
an Inheritance Protection
Guarantee which provides a minimum payment to you or
- House Price Inflation Guarantee will provide you
with a guaranteed payment if there is an exceptional
increase in your property’s value over the natural life
of the plan.
What are the considerations?
You don't have to pay tax on the amount you release,
but it may affect your entitlement to tax and means
tested benefits. An adviser will be able to review this
- As the money is paid at the start of the plan and you
continue to benefit from living in the property, you
will not be paid the full market value of the share of
the property that you choose to sell
- As you are selling part of your property, you will have to
transfer the legal title of your property to the company providing the home
reversion plan. If you want to buy back the share of the property that
you sold in the future you will need to pay the full
- If house prices rise in the future you will only benefit
from the percentage you still own
- Because you are selling part, or all of your home the
inheritance you leave will be reduced.
This is a home reversion plan. To understand the features
and risks, ask for a personalised illustration.