Home Reversion Schemes

You may be offered another way of turning your home into cash.

Home reversion schemes seem similar to home income plans but they are very different.

You sell your property to the company offering the scheme. They give you a lump sum, usually of about half the value of the house though the amount varies with your age. And they allow you to live in the property at no charge until you die.

The money they pay is not a loan; it is a cash payment in exchange for your home with you as a sitting tenant. So there is no loan interest to pay.

You can do what you like with the lump sum, including buying an annuity.

Because you are giving up your title to your home, and there is no loan to repay, you generally get more from a home reversion scheme than from a home income plan.

But your heirs get nothing.

In exchange for about half the current value of your home when you take out the plan, the company gets the full market value of your home when you die.

On the whole, home reversion plans are not recommended unless you have no heirs.

For more information on - Choosing A Scheme

or Tax Allowances

Choosing A Scheme

/retirement/pensions/income/advice/choosing-a-scheme.php... see: Choosing A Scheme