A home reversion plan allows you to access all, or part, of the value of your property while retaining the right to remain in it, for either a nominal rent or rent free.

With home reversion, the provider will purchase all, or a percentage, of your house. You will understand precisely what portion of the property you have parted with and what has been ring-fenced for later use. The percentage you retain in your property always remains the same, regardless of the change in property value, unless you decide to take further cash releases.

At the end of the plan your property is sold and the sale proceeds according to the remaining proportions of ownership. Like lifetime mortgages, you may be able to access more funds, depending on your age and medical conditions. You will be provided with a tax-free cash lump sum or regular payments, and a lifetime lease guaranteeing you the right to stay in your property rent free for the rest of your life or until you have to move permanently into care. Lenders will expect you to keep your home in good condition, and carry out any repairs or maintenance needed. In addition, customers couldn’t make any structural changes to their property.