There are not many companies in the UK offering Reversion Plans, but of those that do, you have the added peace of mind of their SHIP – Safe Home Income Plans status.

Unlike other equity release products, a Reversion Plan is a process where you sell a percentage of your home in return for a cash lump sum, monthly payment, or a combination of both, to do with as you please. You then continue to live on in your home without any effect on your lifestyle. You are still responsible for maintenance and upkeep costs and taking care of the property. Then, when you choose to sell the home, or upon death if you do not sell beforehand, the value of the percentage you sold to the Reversion Company is taken out of the sale proceeds.

How much you are able to get through a home reversion plan depends on a number of factors. Advice is essential, as you will need to assess what the different reversion companies will offer if you were to sell between 25% and 100% of your property.

As with most lifetime mortgages and reversion plans, the amount of money available will be dependent on the value of the home, your age, and state of health. For those with an impaired life expectancy, equity release reversion companies will often provide an increased amount.

How do I know if a Reversion Scheme is right for me?

The simple answer is with the advice of a qualified equity release adviser, you can determine if home reversion plans are right for your specific situation. There are many advantages, but those don’t matter if the plan does not suit your needs.

Equity release schemes like lifetime mortgages and reversion schemes are not uniform or necessarily suitable for every single person. Therefore, it is important to think about the situation that you are in specifically and how one of these plans would affect that. With the help of a professional adviser, you will be able to get the answer to whether this is right for you or not.

If this isn't the right solution, you can find an alternative to home reversion plans. There are many other ways that you can get the money that you need and you can discuss these options with a Key Retirement equity release adviser to determine which is the best option for your specific situation.

Key Retirement equity release advisers are there to help you with all the information you need about reversion schemes and other equity release schemes. You can even schedule an in home or over the phone appointment that will allow you to talk in detail about your specific situation and needs r.

Some advantages of a home reversion plan

• It is possible guarantee an inheritance
• Unlike an interest only lifetime mortgage or equity release scheme, there are no payments to be made or interest to roll up
• If the value of your property should rise, you will benefit from the increased value of the percentage you still own.
• In comparison to a Lifetime Mortgage, a Reversion Scheme tends to offer a greater amount the older you are.
  

Some disadvantages of a home reversion scheme

• When selling a portion of your home, you will not receive the full market value for the percentage sold. A lower than market value is always offered as you also receive the benefit of living in the property for the rest of your life rent free.
• You will only benefit from increased value in your own share, with the reversion company benefiting from the percentage of the property value that they own.
• Unlike a Lifetime Mortgage that can be repaid, a reversion scheme does not generally allow you to purchase back  the portion of the property previously sold.
• Unlike a Lifetime Mortgage where it is sometimes possible to apply for a further advance, Reversion schemes do not provide that facility.
• Low income status families might not be well suited for this plan because it can affect the state benefits that are received, including insurance and other benefits. If you do not want to risk losing your state benefits, you should look elsewhere for financial solutions.