Home Reversion Schemes
Home reversion schemes and plans allow homeowners to tap into the value of their house and live in it until their death.
A home reversion scheme means that you sell your house, usually at a discount to an equity release firm. In return they allow you to:
- Live in the home until your death.
- Give a % of the equity in the house, that you can use for your retirement.
At death, the house is sold to reimburse the lender, the remainder of the cash is then distributed to the heirs in the will.
The advantage of Home Reversion schemes
- Low risk way to borrow money
- Home value is secured.
- Attractive in periods of falling house prices or stagnant house prices
- You can choose between a lump sum and an annual income
Original post by Tejvan R Pettinger