Home Reversion Plan
This involves the reversion company purchasing or arranging for someone else to purchase some or all of your property. You get the sale proceeds as a cash lump sum, although with some schemes the lump sum is invested to generate a regular income. Since the reversion company cannot re-sell the property until the earlier of your death or you move out, you will receive less than the market value for the percentage being purchased - typically 35% - 60%.
Generally speaking, the older you are when you start the scheme, the higher the percentage of the actual market value you'll receive for the portion of the property you are selling. When the property is sold, the reversion company receives the same percentage of the sale proceeds as that which they originally purchased. Your estate benefits from any rise in the value of any part of the property you may have retained.
We don't usually charge a fee, but depending on individual cases we ocassionally charge a fee of £250, in addition to reciving commission. Alternatively, you may choose to pay a fee of 1% of the loan amount, and we will refund any commission. For example, on a loan of £100,000, a fee of £1,000 would be payable.
We will discuss this prior to application
This is a Home Reversion Plan. To understand the features and risks, ask for a personalised illustration
For Equity Release Schemes, we usually charge a fee of £550. In addition, we will receive commission from the lender.
Alternatively you may pay a fee of 1% of the loan amount and we will refund any commission from the lender. ie on a loan of £100,000 a dfee of £1,000 would be payable.