Equity ReleaseReversion Plans
With a reversion plan you sell all or part of your home to a reversion company in exchange for a guaranteed lifetime lease and a tax-free lump sum.
Typically you do not receive the full market value of your share of the property because the reversion company gives you the absolute right to stay in your home rent- and interest-free for the rest of your life and it could be many years before the company receives back the money it has invested in your home.
You can move home and the plan will move with you. Usually you can also exchange more of your home at a later date if you want to release more cash. Conditions will apply in both cases.
When your property is sold, usually after your death, your estate and the reversion company will share the proceeds, including any growth in the property value, according to the shares you agreed at the outset.
The main feature of a reversion plan is that you can guarantee an inheritance and you are likely to be able to release more cash than from a lifetime mortgage.
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