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Reversion Plans
A home reversion plan allows you to release a percentage of the
value of your home. The interest accrued in this plan is in line
with the appreciation (or in rare instances, depreciation) of
the value of your home. For example, if you choose to release
20% of the value of your home, the lender will receive 20% of
the value of the property at the time of the sale.
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Your home will be valued by a surveyor working with the lender. You will not receive the full market value of your home as the lender is offering you a tax free lump sum and is allowing you to live in your home rent free.
With this plan, your age is a primary factor in determining the allowable surveyed value of home. Other factors such as your health, gender and the estimated future value of your property will also be taken into consideration. |
The loan must be paid off on the sale of your house, therefore
this plan may be unsuitable for anyone wishing to leave a complete
property (as opposed to the monetary value of the property) as
an inheritance for their next of kin.
Unlike the mortgage plan, the reversion plan gives you the opportunity
to release upto 100% of the surveyed value of your home, as there
are no interest rates applied to the loan.
Go to: equity release index | mortgage
plans.
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