Equity Release - Home Reversion Schemes

  - Compare a selection of home reversion equity release schemes. Make sure you also discuss your options with a financial adviser too.
Also look at:

Compare Home Reversion Schemes

 Min AgeMin Property ValueMin LoanMax Loan 
 
Bridgewater Equity Release
Flexible Release Plan
Flexible Release Plan
65£120kLesser of 25% reversion or £25k£250k Proceed
Product Fee: None
Bridgewater Equity Release
Maximum Release Plan
Maximum Release Plan
65£120k100% reversion only£250k Proceed
Product Fee: None
Bridgewater Equity Release
Secured Escalating Release Plan
Secured Escalating Release Plan
65£120kLesser of 25% reversion or £25K£250K Proceed
Product Fee: None
Hodge Lifetime
Shared Growth Option
Shared Growth Option
65£60k30% of reversion90% of reversion or £250K Proceed
Product Fee: None
Newlife - Home Related Finance
Optimum
Optimum
65£75k£25k£250k Proceed
Product Fee: Arrangement £695
Newlife - Home Related Finance
Options
Options
65£75k£25K£250k Proceed
Product Fee: None
Last Updated: Thursday 10 July 2014 14:07

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Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.
 
A Home Reversion scheme involves a company buying your home or a part of it. In return you get a cash lump sum or an income. You will only receive a percentage of the market value of your home because the buyer:
  • allows you to carry on living there
  • cannot sell it until you die or move into care

The older you are when you start a home reversion scheme, the higher the percentage you’ll get of your home’s market value. You will hold a lifetime lease that allows you to stay in your home and on death or sale of the property the reversion company gets the share you originally sold.

 

Equity release: home reversion schemes explained

  • Sell a part, or all of your home
  • No interest repayments
  • Safeguard a portion of your home as an inheritance
  • It’s best to speak to a financial adviser, as well as anyone who stands to inherit your estate

Download PDF Download this information in our Home Reversion Scheme Factsheet

Equity release plans allow you to use the money in your home, to increase your income in retirement.

There are two types of equity release plan:

Home reversion plans work by you selling part, or all of your home to a reversion company. The reversion company buys at under market value, and then benefits from increases in house prices throughout your lifetime. Because house prices have fallen since their peak in 2007, there are currently only a few home reversion schemes available.

Although you may sell your home in full, you still remain living there. You get a lifetime lease that allows you to stay in the house rent free, or with a nominal low rent - and there are no interest repayments. The home reversion scheme ends when you die, or when the property is sold.

Home Reversion Schemes
Advantages Disadvantages
Green tick Stay in your home
Green tick Get a lump sum or an income
Green tick Leave a stake of your home as an inheritance
Green tick The percentage of your home that the reversion company owns does not increase
Green tick Because the reversion company owns a percentage stake of your home, you both share in rises and falls in house prices
Red cross You sell part, or all of your home at under market value
Red cross If you die in the early years you will have sold a cheap stake in your home
Red crossEquity release could affect entitlement to certain state benefits

Download PDF Download this information in our Home Reversion Scheme Factsheet

WarningEquity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.

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