Choosing your equity plan, you must always make the right decision regarding what scheme you go for. A home reversion is one of the equity plan schemes you can choose and it is important to consider whether this is the best option for your specifications.
Essex Equity Release offer advice for all types of equity release plans, including a home reversion. We can help all homeowners select the best plan, tailored directly to you with unbiased advice.
What Home Reversion Plans Are
Home reversions plans are a particular scheme that can be used when you are looking to release equity from your home. If you are worried about the interest rate of certain plans or worried about how much money you could potentially owe lenders, a home reversion plan could be the best option for your specific needs.
Home reversions mean having to sell part of your property for a tax-free lump sum to an equity plan provider. You also have the choice of receiving regular payments so you can receive this money as one or in instalments. When it comes to making the repayment, this will be based off the value of your property when sold. This eases any worries you have about the interest rate but could still lead to expensive repayments.
There are several aspects of the plan you must consider and what you will be using the money for. Depending on your preferences, a home reversion may be the best option for you.
Features Of A Home Reversion
To begin your home reversion equity plan, you will sell part of your property to a provider. If your property is worth £200,000 and you choose to release £40,000, this means you have sold 20% of your property. when it comes to making repayments after your property has been sold, your provider will receive 20% of what is sold. This means if your property has increased in value, more money will be repaid. Some lenders may also demand a larger percentage of the property for what they give you.
Once you have released the money from your property, you and your partner can live in the property rent-free until you both pass away or move into long-term care. This can be a great option for many homeowners, although it means you only have part ownership of the property. If you are also looking to use the money to invest back into your property, lifetime mortgages may be a better alternative. If you invest back into the property to increase value, more money will be owed when sold.
There are several features of a home reversion, which includes:
- Easy Alternative To Downsizing/ Relocating
- Equity Release Is Tax-Free
- No Interest
- No Monthly Repayments
- Ring-Fence Property Percentage For Inheritance
- Stay In Your Home Rent-Free
Are You Eligible For Home Reversions?
To be eligible for a home reversion equity plan, you must be over the age of 65. Your property value must also be at least £80,000, ensuring there is enough money to release from your property. Any percentage of the property can be sold, all the way up to 100% if you are looking to release as much money as possible whilst living in the property rent-free.
The amount of money you will be able to receive is based on your property value and how much you would actually like to sell. If you have any health issues, in addition to your age, this could also impact your equity release plan.
For more information on a home reversion equity release plan, get in touch with Essex Equity Release. We provide a fast response to all homeowners, booking a suitable time to give you advice and information during a detailed consultation. Make an enquiry and call 01268 799211 or fill in our contact form today.