Full Reversion Plans

You sell 100% of your home to a reversion company for a lump sum, but you retain the right to live there, either rent-free or for a nominal rent.When your home is eventually sold the reversion company is recompensed. When you sell 100% of your home to the reversion company it gets 100% of the proceeds of the subsequent sale prices, including any growth in value.

The reversion company will only pay you a percentage of the current market value for any share of your home that it buys because it may have to wait years for a return. The percentage of the value of your home that the reversion company will pay is typically between 30% and 60% of its current value, dependent upon your (and any partner's) age, sex and health

Advantages
Disadvantages

No monthly repayments
The home is bought at a discount so may be less suitable for people in their 60's

Plan provides a cash lump sum and/or partial payments
If death occurs soon after taking out a plan, it could be poor value for money

The payment is larger if the applicant suffers impaired health
Reversion companies may not buy 'unusual properties' and/or in certain locations

House value is removed from the estate for Inheritance Tax purposes

The decision cannot be overturned once the home is sold
If the applicant dies shortly after completing the sale, the family may receive a rebate

Partial Reversion plans

You sell a share of your home, to a reversion company for a lump sum, but you retain the right to live there, either rent-free or for a nominal rent. When your home is eventually sold the reversion company is recompensed. If you sell 50% of your home to the reversion company, it gets half of the proceeds, including any growth.

The reversion company will only pay you a percentage of the current market value for any share of your home that it buys because it may save to wait years for a return. The percentage of the value of your home that the reversion company will pay is typically between 30% and 60% of its current value, dependent upon your (and any partner's) age, sex and health.

Advantages
Disadvantages

No monthly repayments
The home is bought at a discount, so may be less suitable for older people in better health

You share in any rise in the property's value
A further percentage of the home can be sold to release additional funds|Reversion companies may not buy 'unusual properties' and/or in certain locations

The payment is larger if the applicant suffers impaired health

Part of the property value is removed from the applicant's estate for Inheritance Tax purposes

If the applicant dies shortly after completing the sale, the family may receive a rebate

The Company cannot accept any liability for the accuracy of the information above or clients reliance on it.