GLOSSARY
EQUITY RELEASE
The equity or value in your home is its open market value, minus any mortgage or other debt you have secured against it.
Equity release is a way of accessing the cash tied up in your home, without having to move out.
HOME REVERSION
Home Reversion is a type of equity release plan where you sell all or part of your home to a reversion provider in return for a cash lump sum or regular income. You can continue to live there for as long as you wish.
REVERSION PROVIDER
The company that provides the Home Reversion Plan. You transfer ownership of the property to the reversion provider but remain there on a lifetime tenancy.
LIFETIME TENANCY
When a genuine Home Reversion takes place a secure lifetime lease is provided, which means that once you have sold your property to the reversion provider, you can remain in your home for the rest of your life. Only authorised and regulated Home Reversion Providers offer this guarantee.
SELL AND RENT BACK
A non-regulated form of home reversion without the guarantee of a lifetime tenancy.
LIFETIME MORTGAGE
A type of equity release plan where a loan is secured on your home. The loan is repaid by selling your home when you die or go into long-term care.
THE FINANCIAL SERVICES AUTHORITY (FSA)
The regulatory body that oversees much of the financial services industry within the UK. The FSA became responsible for the regulation of Home Reversion Plans in April 2007.
AUTHORISED AND REGULATED
Authorised and regulated firms have taken specific steps to be authorised by the FSA and are bound by the relevant rules and regulations.