A Home reversion plan is another financial product that is available to homeowners looking to gain access to the money tied up in their properties. There are a number of key differences between a draw-down mortgage and a home reversion plan, so it is important that you fully understand the options available to you.
With a home reversion plan, you agree to sell all or part of your property to the reversion company, for an agreed lump sum of money. Once the agreement has been signed the ownership of the property transfers to the reversion company. The seller does not receive full market value, but one of the huge benefits of this option is that the seller is granted a lifetime lease, which enables them to live in the property rent free until their death. Upon the death of the homeowner, the property is then sold, the debt repaid and if there is any surplus that is then added to the estate.