Home reversion plans enable you to sell part of your home in exchange for a lump sum. A home reversion plan is not a loan.
When you die or move into long term care your home is then sold and you or your estate receive back your share of the sale proceeds, less any fees (such as solicitor's fees) that have arisen as a result of the sale.
For example, if you sold 30% of your property to the reversion company, on the sale of your home they would receive 30% of the proceeds, including any growth in its value.
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Disadvantages |
You have no repayments to make – instead the money you receive is repaid on the sale of your home
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You effectively become a tenant in your own home, although you are still liable for its maintenance and upkeep
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You know from the outset the share of your home you retain for your estate
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It will reduce the remaining equity you have by the share of your property that you sold and you won't benefit from any increase in property value for the share that is owned by the home reversion company (nor will you suffer from any decrease in property value for the share that is owned by the home reversion company)
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| You continue to benefit from any house price increases on your share of the house |
You will usually be selling a part of your home at a discount to its current market value |
If you have any medical or lifestyle conditions which affect your health, you may receive more
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If you die shortly after taking out the plan, you will have effectively sold a share of your home very cheaply (some providers do offer protection against this with an early death clause)
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Charges may apply for valuation fees and solicitor's fees
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Taking out a home reversion plan could affect the amount of means tested benefits you receive. |
This is a home reversion plan. To understand the features and risks, ask for a personalised illustration.
Useful links
Just Retirement's Roll-up Lifetime Mortgage
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