Compare home reversion plans - equity release - moneyfacts.co.uk

Equity Release - Home Reversion Plans

  - Compare a selection of home reversion plans. Alternatively speak to an adviser to explore your retirement income options.
Also look at:

Compare Home Reversion Plans

 Min AgeMin Property ValueMin LoanMax Loan 
 
Bridgewater Equity Release
Flexible Release Plan
Flexible Release Plan
65£120kLesser of 25% reversion or £25k£250kGo to Site
Product Fee: None
Bridgewater Equity Release
Maximum Release Plan
Maximum Release Plan
65£120k100% reversion only£250kGo to Site
Product Fee: None
Bridgewater Equity Release
Secured Escalating Release Plan
Secured Escalating Release Plan
65£120kLesser of 25% reversion or £25K£250KGo to Site
Product Fee: None
Last Updated: 31st August 2016
Notes:
Alphabetical ordering (all products shown as small data set) only one provider remaining.

Moneyfacts.co.uk Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply via Moneyfacts.co.uk today. Products shown with a yellow background are sponsored products.

 

Equity release: home reversion plans explained

A Home Reversion plan involves you selling part, or all, of your home to a home reversion company, whilst retaining the right to live in the property for the rest of your life. In return you get a cash lump sum or an income which you can spend on almost anything you want.

You will receive less than the full market value of your home, because the reversion company cannot sell the property until you die or move permanently into long-term care.

Provided you only sell part of your home to the home reversion company, you will also benefit from any increases in house prices during your lifetime on the part of the property you still own.

When the property is eventually sold, the home reversion company takes the proceeds of the percentage that it owns and any remainder goes to you or to your estate.


At a glance: Advantages and disadvantages of home reversion

Home Reversion Plans
Advantages Disadvantages
Green tick You receive a cash lump sum or an income.

Green tick You may be able to release further funds in the future if you haven’t sold 100% of your home to the home reversion provider.

Green tick You can use money you release for almost anything you like such as home improvements or helping family.

Green tick You can stay living in your home for the rest of your life rent-free, or for a nominal amount.

Green tick You’re able to live in your home for the rest of your life, or until you move into permanent long-term care.

Green tick You have no repayments to make. You’ll receive your money from the home reversion plan provider. When your home is sold, the home reversion provider will receive their money for the proportion of your home that you sold to them.

Green tick A portion of your home can be left as an inheritance and you’ll know from the outset what proportion of your home you’ve chosen to retain for your estate.

Green tick The percentage of your home that the reversion company owns does not increase. For example, if you sold 10% of the value of your home to the home reversion provider, then they will continue to own 10% of the value of your home.

Green tick If your property increases in value, you’ll still see benefit from the increase in value of any proportion that you still own.

Green tick You can be confident that your estate will never be left with a debt that is more than your home is worth.

Green tick You can move your plan to another suitable property without any financial penalty – a partial repayment may be required if the value of the property you are moving to is less than the property on which you have taken out equity release.
Red cross You sell part, or all, of your home for less than the market value. This is because the reversion company who buys your home cannot sell it until you die or move into permanent long-term care, and so need to protect themselves from any potential loss in value.

Red cross A home reversion plan is a lifelong commitment. If you decide to buy back the share of your home you have previously sold, you will need to do so at the current market value, which could be significantly more than you were paid for it.

Red cross If you die soon after taking out a home reversion plan, you will have effectively sold a proportion of your home for a cheap price – at under market value (some providers do offer protection against this with an early death clause).

Red cross You’re responsible for the maintenance of your home.

Red cross Releasing equity through home reversion could affect your entitlement to some means-tested state benefits.

Red cross Releasing equity will reduce the value of your estate.

Red cross You won’t benefit from any increase in property value for the share that is owned by the home reversion company.

Red cross Charges for equity release advice, valuation fees and solicitors fees may apply, as well as admin fees.


What next?

Call the Moneyfacts Equity Release Advice Service provided by retirement specialist Just Retirement Solutions Limited on 01737 233462^ . There’s no obligation to buy but an advice and arrangement fee of £749 is payable if you purchase a product that Just Retirement Solutions recommends.

Just Retirement Solutions has helped retirees release an average of £41,988* from their homes. Their advice is always quality checked and you’ll only be recommended a product where neither you nor your loved ones will ever owe more than the value of your home. Their expert team can answer your questions, guide you through the process and help you make the right decision for your circumstances.

As releasing equity can affect your entitlement to state benefits, everyone receives a full state benefits review. In fact, over half of the people that Just Retirement Solutions speaks to are eligible to claim benefits, and new claims can be worth up to £6,890 a year**.

*Average initial release value taken by unique Moneyfacts customer, between 2007 – July 2016.

**Based on a sample of 196 Just Retirement Solutions customers between 1/1/2015 and 31/12/2015.

^ Lines are open 9am to 5pm, Monday to Friday (except bank holidays). Calls may be recorded or monitored, and may be charged.

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