Reversion plan

Home Reversion Plans differ from Lifetime Mortgages due to the fact that the lender purchases a proportion of the property from the client, rather than lend against the value of the whole property, in return for a lump sum.

The percentage of the property purchased can vary, typically ranging from 25-100% of the property value. We currently have three providers on Panel who offer Home Reversion Plans, all of whom are members of SHIP. (you should only use an authorised provider who is also a SHIP member).

By using a Ship member you ensure that if you take up a home reversion plan that it includes the right to live in the property for life irrespective of the proportion of the property sold.

Home reversion plan is when you sell all or part of your property to the appointed home reversion provider in return for a lump sum.

Home reversion is when the lender will take legal ownership of the property and, when the plan ends, they will retain their share and pay any balance remaining to you or your estate.

You keep the right to remain in your property rent-free for the rest of your life or until you go into long-term care, the lump sum that you receive will be less than the full market value of the share of the property you sell.

More information on home reversion FSA Fact sheet

See Home Reversion Calculator

For further information, please call us on tel: 01268 573 306 or email us

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Good points

• The reversion company makes all of its money when the property is sold so No ongoing repayments to make,
• You know from the start what share of your home or its value will be left to your family.
• You continue to share in any rise in the value of your property (unless you have sold its entire value).
• You can take extra cash advances, depending on the amount you originally took.
• If you are a smoker or depending if you have serious medical problems, you may be able to get a bigger payment.

Bad points

• The reversion company will buy at a discount rate at the current market value.
• Reversion companies are usually less suitable for people under 60 years.
• If you die soon after taking out a plan, you could effectively have sold off your house or a percentage of it at a reduced price.
• Some schemes give families a rebate if you die within the first few years of signing up.
• Reversion companies do not take all properties on.

More information on home reversion FSA Fact sheet