Home Reversion Plan

They could have major implications for tax benefits inheritance and your long term financial planning.

Home reversion plan. Home reversion plans are high risk products. The other is a lifetime mortgage. A home reversion plan is a type of equity release scheme where part or all the homeowners property is sold to the plan provider in exchange for a tax free lump sum or regular payments. Simple in concept it basically allows any london homeowner to sell a percentage of the property in order to raise a tax free cash lump sum.

The home reversion plan was the forerunner of all of today s equity release schemes. For example if your home is worth 100 000 and you sell 100 to the home reversion firm using a home reversion plan you could get between 25 000 and 50 000 in cash. You should always get financial advice before taking out a home reversion plan or any other kind of equity release scheme. By selling a share of your property you become a co owner but continue to enjoy the right to live in it for the rest of your life.

By selling off a portion of your property you then become a co owner in your own home. The homeowner sells part of or all of the property in exchange for a tax free lump sum payment s. This lump sum is significantly less than the market value of your. A home reversion plan is when you sell part or all of your property to a provider which pays you a tax free lump sum in return.

Home reversion plans are high risk products. A home reversion plan sees you selling a stake in your property in return for a cash lump sum. A home reversion plan involves selling a part or all of your property to a home reversion company in exchange for a tax free cash lump sum or regular payments. The money you release with a home reversion scheme can either be a cash lump sum or a regular income.

If you sell 100 of your property then you lose ownership completely. Home reversion plans function as an alternative to the more standard products available in the equity release marketplace. Any increase in the property s value following the sale will benefit the provider only since you and your estate no longer have any legal claim to it. A lifetime tenancy is then created protecting the homeowners residency and freedom to live in their home rent free for the rest of their life.