Home Reversion Schemes

Equity Release Finance

Whilst Lifetime Mortgages are the most popular form of Equity Release finance some clients with no desire to leave their home to their heirs or keen to obtain a greater capital release may prefer the Home Reversion route.

Home reversions require you to sell all or part of your property to the provider of the funds. They in turn will provide a tax free lump sum or income or a combination of the two. In exchange for this sale you and your partner may remain in the home usually rent free [or subject to a peppercorn rent which may effectively be a nominal amount of say one penny] for the whole of both your lives or until you both have entered long term care.

Home Reversion means that when the survivor of you or your partner dies the property reverts to the reversion company. If you have sold the property outright then all of the proceeds go to the reversion scheme provider; if you have sold only part of the property then the unsold portion will pass to your estate for distribution in accordance with your wishes.

The advantages of this type of equity release finance scheme are: i) you know at the outset what proportion of your property will be left to your heirs if you don’t sell all of your home; ii) there is no debt or interest to be repaid after your death; iii) you and your partner can live in the property for the whole of your lives ‘rent’ free; The disadvantages are: i) since you have sold the property you become effectively a tenant in your own home; ii) if you have sold it all you or your heirs would not share in any growth in value; iii) any means tested or tax benefits may be affected.

Note: Home Reversion schemes are not FSA regulated at present

This is a Home Reversion Scheme. To understand the features and risks please ask for a personalised illustration.

Call us on 0845 013 4561 or email us at john.land@honnisterpartners.com to find out more about equity release companies.

Equity Release Consultants is a trading name of Honister Partners Ltd. Honister Partners Ltd is an appointed representative of Sage Financial Services Ltd which is authorised and regulated by the Financial Services Authority. Sage Financial Services Ltd is entered on the FSA register (www.fsa.gov.uk/register) under reference 150452. Honister Partners Ltd Registered Office: 1 Nicholas Road, London, W11 4AN. Registered in England and Wales No. 06923303. The information and content of this site is directed at UK consumers only & is subject to the UK regulatory regime.