Home Reversion Schemes:
Home reversion schemes provide a way to unlock the money in your home by selling all or part of your home to an investment company.
Home reversion schemes are when the homeowner sells their home, or a part of it, to an equity release provider. The homeowner will then receive an agreed amount of money - either as a lump sum or as a monthly income, or both. The person who has taken out the scheme should have the right to reside in the property for as long as they wish. When he or she dies or is taken into care, the equity release provider will recoup the money owed by selling the property. If there is any remaining equity from the proceeds of the sale then this is distributed according to the borrower's will.
Pros: Provides an income if you have no other means of repaying a loan.
Cons: You are unlikely to be offered the full market value of your home. If you sell all of your home to the equity release provider, you or your family will not be able to benefit from any increases in the value of the property.
Other Types of Equity Release Plans Include:
Please read more on the different types of lifetime mortgage below: