Glossary - Home Reversion Schemes

Home Reversion Schemes is a way of creating finance using property.
Home reversion schemes are products which enable the customer to tap into the value of their home without having to sell it and move out. Basically they are equity release schemes. Typically used by retired homeowners consumers have found that these plans can provide a safe and successful method of releasing a cash lump sum.

Example: Home Reversion Schemes
Selling off part of a property in return for a lump sum. Although a part of the property is sold the right to live in it is retained. Should a death occur the property would then be sold and the percentage owed to the company repaid. UK home reversion schemes normally allow the release of finance of between 25%-90%.

Useful Tip
Any consumer considering using their property to raise finance should ensure they are aware of the terms and conditions that Enquire, before taking on any product secured on what is typically their largest investment they need to understand what they are agreeing to.
Points to check include, Right to live in the property for life? Freedom to move property without penalties? Would you receive a cash lump sum or regular income payments? What is the duration of home income plan? What happens should you die?

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