Equity Release | Home reversion schemes explained

Mortgage Guide
Click for Full Contents

Equity Release UK Guide
Click for Full Contents

Home reversion schemes explained

A home reversion scheme is a type of equity release plan which allows you to borrow against your home.

The scheme provider takes ownership of a proportion of the value and gives you a lump sum or regular income in exchange.

The advantages

You retain the right to live in it until you sell up or die, when the scheme provider takes the same proportion of the property's current value.

There is no interest to be paid on the debt.

The disadvantages

You need to be at least 65 to qualify, and you won't get anything like the market value for the percentage you sell. (Meanwhile, you'll remain wholly responsible for the upkeep.)

For example, if your home is worth £200,000 and you decide to sell a half share, you might expect the provider to give you £100,000.

In fact, you are likely to receive around £50,000 or even less.

When you die, unless your heirs are very well-off, they will probably have to sell up to clear the debt.

If your home's value has remained static and they realise the full £200,000, they will be left with just £100,000.

Hopefully, though, by the time you die, it will be worth far more.

But even if they are able to sell it for, say, £400,000, they can keep only half, as the scheme provider is entitled to the rest meaning it gets £200,000 in exchange for lending just £50,000.

To help you decide if equity release is for you, read Choosing an equity release plan and Questions to ask equity release providers.

If you are interested in finding out how much equity release you could get for yourself, the calculator below will give you a rough idea of what is possible.

To get a more precise figure the best thing to do is to talk to an Equity Release Specialist. To contact a recommended one simply click the "Next" button - after entering your figures - then fill out the quick contact form. You will be contacted soon for a free, no obligation quote.

Step 1 of 2

Equity Release

Age of the youngest homeowner?
Estimated value of the property?
Total outstanding mortgage or secured loan on the property?

Approx. amount available via equity release: Minus any outstanding mortgage or loan:	£ - £
Potential Cash Available: (May vary based on personal circumstances)	£
Equity release is only available if the youngest homeowner is 55 or over. The best option for those under 55 is a remortgage. Click here now to get remortgage advice and a quote
There is not enough equity available in your property for Equity Release. Your best option is a remortgage. Click here now to get remortgage advice and a quote
There is not enough equity available in your property for Equity Release.

Get equity release advice now

Step 2 of 2

Your details

First name:	Last name:

Phone number:	Alternate phone number:

E-mail address:	Best time to call you:


First line of current address:	Current postcode:

Based on your requirements we have selected the FSA regulated broker Broker Name to help you with your enquiry. Please click SUBMIT to confirm that you are happy for them to contact you by telephone/e-mail.