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 may be charged, for arranging your mortgage, according to the level of service offered and our clients circumstances. This could range from zero to 1%. Typically if we arrange a mortgage of £100,000 and our fee is 0.5% of the loan amount, then the fee charged is £500.00.
The initial meeting will be free of charge and you will be made fully aware of all costs prior to conducting any business.
This is a Home Reversion Plan. To understand the features and risks, ask for a personalised illustration
.