Home Reversion Plans

Home Reversion involves selling part or all of your home to a reversion provider for a tax-free lump sum, regular income, or both. You are granted a guaranteed lifetime lease meaning you can continue to live in your home for the rest of your life.

SYH Charterhouse will research the Equity Release market in order to find the Home Reversion plan that best suits your requirements. Listed below are some Home Reversion products that are currently available. For more information about how Equity Release could work for you, please contact us for a no obligation discussion.

Maximum Release Home Reversion Plan

The Maximum Release Home Reversion plan allows you to release the maximum amount of equity from you property in one transaction (100% in England, 99.9% in Scotland). You do this by transferring ownership of your property to a Home Reversion provider, who will in turn give you a tax-free cash lump sum and a guaranteed lifetime lease. This means you sell the legal ownership of your home but will be guaranteed the right to live there for as long as you wish. In the case of joint applications, this applies to both parties, so that your individual interests are fully protected. You will not be required to make any monthly repayments. At some point in the future, if you move into long-term care or when you pass away, the Home Reversion provider will take full ownership of the property.

Partial Release Home Reversion Plan

Partial Release Home Reversion Plans give you the opportunity to sell part of your property to a Home Reversion provider for a tax-free cash lump sum, whist retaining part ownership of the property yourself. You are then guaranteed the option of further cash releases if and when you require them at some point the future. As with a Maximum Release Home Reversion, a guaranteed lifetime lease gives you the right to live in the property for as long as you wish. This option may appeal to you if you wish to retain a financial interest in your home, whilst still benefiting from future increases in property values.

Advantages of a Home Reversion Plan:

Tax-free lump sum
Guaranteed lifetime lease
No monthly repayments
You can guarantee an inheritance (Partial Release plan)
You can continue to benefit from any increase in property values (Partial Release plan)
You may be able to release more than you could with Lifetime Mortgage depending on your age.

Disadvantages of Home Reversion Plan:

Eligibility for state benefits may be affected
Your tax position could be adversely affected
You live in the property under the terms of a secure tenancy, which will mean adhering to all of the terms of the lease
You will not benefit from an increase in property values (Maximum Release)
You will not be able to leave a legacy from the property to your beneficiaries as an inheritance (Maximum Release)
You will not receive the full market value of the property when you undertake a Home Reversion plan.

For a more detailed overview on the points to consider before proceeding with a Home Reversion plan, please visit Considerations.

Equity Release may involve a Lifetime Mortgage or a Home Reversion plan. To understand the features and risks, please ask for a Personal Illustration.