Since April 2007, home reversion plans have been regulated by the Financial Conduct Authority and now only account for less than 1% of all equity release sales. Despite this, home reversion plans are still an important consideration in the overall decision making process.
In return for selling part or all of your property to the reversion company, you receive a tax free lump sum or you can opt for a lifetime income.
Further Information on Home Reversion Plans
Home reversion has a higher starting age than lifetime mortgages with a commncement age of 65 years. These equity release schemes use the age of the youngest person, sex and the valuation of the property as the basis for the caluation of the maximum lump sum. From these results you can then determine how much capital is immediately required.
The home reversion companies calculation of its lump sum outlay is based on a discount. The reason for this is due to the fact you will be living in their share of the property for the rest of your life. The basis works on the fact that the younger you are, the lower cash lump sum you will receive.
As an example of the discounting involved - a male aged 70 sells 100% of his property value as he has no children and in poor health. Dependent upon the home reversion scheme recommended, he could receive anywhere between 37% to 41% as a tax free lump sum.
How Equity Release Supermarket can help?
Before equity release is transacted these day, home reversion advice must be sourced from a qualified equity release adviser. Equity Release Supermarket advisers will provide a free initial meeting, either face-to-face at your own home, or via a telephone consultation. From there they will present their equity release solutions from the range of 3 home reversion companies still available.
To book an appointment or find further information on home reversion plans see the following: -
'the complete equity release service'