Home Reversion Plans
The fundamental difference between the two is when you take out a lifetime mortgage you still own your own home. But with home reversion plans, you actually sell a share of your home in exchange for a lump sum of money or a regular income for life. This is usually higher than the sum you can raise from a lifetime mortgage. You can remain living there for the rest of your life rent-free but all or part of your home will belong to someone else,
Home reversion plans are not loans and so there’s no interest to pay. However, if your property increases in value, you will only benefit from the increase in value of the proportion you still own.
Equity release may not be right for everyone. It may affect your entitlement to state benefits and it will reduce the value of your estate.
We can advise you on your options. If you’d like more information please contact us.