What Is A Home Reversion Plan

The homeowner sells part of or all of the property in exchange for a tax free lump sum payment s.

What is a home reversion plan. With this plan option you can continue to reside in the property rent free until deceased if a. The other is a lifetime mortgage. Home reversion plan or lifetime mortgage. With a home reversion product the provider will purchase all or part of your house taking into account your age and your health and will provide you with a tax free.

This lump sum is significantly less than the market value of your. Often referred to as a lifetime lease you get to live in your home rent free either for life or until you move into permanent care. By selling a share of your property you become a co owner but continue to enjoy the right to live in it for the rest of your life. Home reversion plans function as an alternative to the more standard products available in the equity release marketplace.

A home reversion plan sees you selling a stake in your property in return for a cash lump sum. Furthermore the provider will pay any stamp duty due on the initial amount released during home reversion. Once you ve established whether equity release is right for you your choice between different equity release schemes typically comes down to either a home reversion plan or a lifetime mortgage. The home reversion scheme is a form of equity release that is regarded as the best option as it allows you to basically sell all of your home instantly or to sell only a small part of it to a home reversion provider in return for either the lump sum or regular payments via a reversion plan.

While a lifetime mortgage means taking a loan against the equity in your home a home reversion scheme involves selling all or part of your home to a. A lifetime tenancy is then created protecting the homeowners residency and freedom to live in their home rent free for the rest of their life. See the fca definition of a home reversion plan here for more detail. They could have major implications for tax benefits inheritance and your long term financial planning.

A home reversion plan is tax free in that no tax is due on the lump sum when you receive it from the provider. A home reversion plan is a type of equity release scheme where part or all the homeowners property is sold to the plan provider in exchange for a tax free lump sum or regular payments. Home reversion plan vs lifetime mortgage. A home reversion plan is when you sell part or all of your property to a provider which pays you a tax free lump sum in return.

A home reversion plan also allows you to access all or part of the value of your property while retaining the right to remain in your property rent free for the rest of your life. The homeowner is still allowed to stay living in the property and never has to pay rent. Home reversion plans are high risk products. With a home reversion plan you agree to sell part or all of your home in return for a tax free sum of money.