???? What is a Home Reversion Plan?

A home reversion plan is a type of equity release scheme where you sell a percentage of your property (for example 30%, 50% or more) to a provider in exchange for a cash lump sum or regular payments. In return, you retain the legal right to live in your home rent-free for the rest of your life, regardless of property market changes.

?? How Does the Home Reversion Calculator Work?

Our calculator estimates how much you might receive based on:

• Property value � the current market value of your home.
• Percentage you choose to sell � the share of your home you want to give up.
• Your age � older homeowners generally get better offers since the provider may need to wait fewer years before reclaiming the share.

For example, if your property is worth $400,000 and you sell 40% at age 70, the amount released may be much higher than if you were 55 selling the same percentage.

? Benefits of a Home Reversion Plan

• Access a tax-free lump sum or income from your property.
• No monthly repayments required � unlike traditional loans.
• Guaranteed right to stay in your home for life.
• Flexible: sell part of your home now, more later if needed.

?? Potential Drawbacks

• You will no longer fully own your home.
• Your estate will inherit less, reducing family inheritance.
• You may receive less than market value for the share sold due to provider risk.
• Early exit is difficult � these plans are designed for lifetime use.

???? Alternatives to Home Reversion

Not sure if this is right for you? Consider alternatives such as:

• Lifetime mortgage � borrow against your home without selling ownership.
• Downsizing � sell and move to a smaller property to free equity.
• Retirement interest-only mortgage (RIO) � pay interest only until death or sale.

? Frequently Asked Questions (FAQ)

1. How much can I release with a home reversion plan?

This depends on your property value, the percentage you sell, and your age. Generally, older applicants can release more cash for the same share compared to younger ones.

2. Do I still own my home with a home reversion plan?

You own only the portion you did not sell. If you sold 50%, you remain a 50% owner and the provider owns the rest. However, you maintain lifetime occupancy rights.

3. Is the money tax-free?

Yes, the money you receive is usually tax-free since it is considered a release of capital, not income.

4. What happens when I pass away?

Upon your death (or if you move into long-term care), the property is sold and the provider receives their share. Any remaining value goes to your estate/heirs.

5. Can I sell more of my home later?

Yes, many plans allow you to sell an additional portion later if you need more funds.

6. Who is eligible for a home reversion plan?

Typically, homeowners aged 55 and above qualify. The older you are, the more favorable the terms.

7. Is this better than a lifetime mortgage?

That depends. A lifetime mortgage lets you keep ownership but accrues compound interest. Home reversion gives up ownership but avoids interest. The right choice depends on your goals.

8. How safe are home reversion plans?

In the UK and many regions, regulated providers must follow strict guidelines ensuring you retain the right to live in your home for life. Always choose a regulated provider.

9. Can it affect my benefits?

Yes. Releasing large amounts of cash may reduce eligibility for means-tested benefits. It�s important to check with a financial adviser before proceeding.

10. How can I use the money released?

Common uses include supplementing retirement income, paying medical costs, helping children buy homes, or funding lifestyle improvements like travel.