Home reversion plans are higher risk than standard mortgages.
They could have major implications for tax, benefits, inheritance and your long-term financial planning.
You should always get financial advice before taking out a home reversion plan or any other kind of equity-release scheme.
This will help you find out whether it's suitable for you.
They can be a useful way of releasing equity from your home but make sure that you’re aware of the risks before you sign up.
If you want a lump sum or income now, and want to stay in your home, and you don’t need anyone else (such as children or other family members) to benefit from the full value of your home, a home reversion might be worth considering.
But you will no longer own your home (or only own part of it).
You’ll still have to maintain the home while you live in it, so you might need to set aside money to do this.
You’ll also have to follow the terms of the lease and you could still be liable for other costs such as ground rent (or chief rent) no matter how much of your home has been sold.
This is an annual sum payable on some freehold properties.
If this could be a problem, then a home reversion might not be suitable for you.
It’s essential you get your own solicitor to check the lease and give you advice.
Home reversions are normally best suited to older people.