Home Reversion Plan
This involves the reversion company purchasing or arranging for someone else to purchase some or all of your property. You get the sale proceeds as a cash lump sum, although with some schemes the lump sum is invested to generate a regular income. Since the reversion company cannot re-sell the property until the earlier of your death or you move out, you will receive less than the market value for the percentage being purchased - typically 35% - 60%.
Generally speaking, the older you are when you start the scheme, the higher the percentage of the actual market value you'll receive for the portion of the property you are selling. When the property is sold, the reversion company receives the same percentage of the sale proceeds as that which they originally purchased. Your estate benefits from any rise in the value of any part of the property you may have retained.
A fee maybe charged on completion of the mortgage which can be added to the amount borrowed. Please ask for a personalised illustration. The fee is only payable on legal completion of the mortgage. Our typical fee is £395
We will also be paid commission from the lender. We may receive a referral fee from the solicitor.
The actual fee will depend upon your circumstances. Paying off short term loans and credit cards with a mortgage could cost you more over the long term. Early repayment charges may apply.
This is a Home Reversion Plan. To understand the features and risks, ask for a personalised illustration