Home reversion allows you to sell some or all of your home to a home reversion provider.
The provider effectively co-owns your home, unless you've sold the whole property, but you keep the right to live there for the rest of your life, potentially rent-free.
In return you’ll get a lump sum or regular payments.
You’ll normally get between 20% and 60% of the market value of your home (or of the part you sell).
When considering a home reversion plan, you should check:
- Whether or not you can release equity in several payments or in one lump sum.
- The minimum age at which you can take out a home reversion plan. Some home reversion providers insist you’re at least 60 or 65 before you can apply.
- The percentage of the market value you will receive. This will increase the older you are when you take out the plan but might vary from provider to provider.
What level of maintenance you’ll be expected to carry out and how often your property will be inspected (this could be every few years).