home reversion plans

A home reversion plan is an arrangement where the following conditions are met:-

• The plan provider buys all or part of a qualifying interest in land (other than time share accommodation) in the UK from an individual or trustees
• The seller is entitled to occupy at least 40% of the land as a dwelling
• The arrangement specifies one or more qualifying termination event at which point the arrangement will end.

A qualifying termination event is where:-

• The person becomes a resident of a care home
• The person dies
• The end of a specified period of at least 20 years, beginning with the day the seller entered into the arrangement

A home reversion plan is different than a life time mortgage. The differences are as follows:-

• The homeowner transfers ownership of some or all of the property to a company in exchange for a cash sum or an income
• No interest is paid to the company
• The original owner retains the right to live in the house until death
• On death, the property (or part of it) reverts to the company which is where the term 'home reversion' comes from.

If you are interested in discussing a home reversion plan, speak to us today on 0845 123 1260.