Home Reversion Plans
How home reversion plans work
A home reversion plan is a financial product which allows homeowners to raise an amount of cash from the equity that they have in their home. In simple terms a percentage of the home’s value is exchanged for the amount required. In order to determine the value of the home a surveyor will produce a report. The full market value of the home will not be received as the lump sum that you receive is tax free and you are still able to remain in your home.
Home reversion plan advice
The Financial Services Authority (FSA) suggests that before you consider taking out a home reversion plan that you consult an independent financial adviser. Our in-house, fully independent financial advisers have a great deal of experience of advising clients in relation to home reversion plans and can advise if this is the best option for you. If you are interested in finding out more about home reversion plans, please contact us..
Home reversion plans and tax
The amount you receive as a result of taking out a home reversion plan is paid to you tax free. In addition, home reversion plans are also used in inheritance tax planning. To find out more about equity mortgages please contact us..
Advantages of home reversion plans
The main benefits of entering into a home reversion plan are detailed below. Our advisers will discuss every element of the plan to allow you to decide if this is suitable for you.
- Tax free cash amount to use as you wish;
- You can remain in your home with no repayments to make;
- If you sell less than 100% of the equity you will benefit from house price rises;
- You can reduce inheritance tax liabilities;
- Equity remaining in your home can be bequeathed.
Free home reversion plan consultation
Our financial advisers will discuss the options provided by home reversion plans to allow you to come to a decision as to whether a plan is right for you. To arrange your free consultation please >click here.