Home Reversion Plan
This involves the reversion company purchasing or arranging for someone else to purchase some or all of your property. You get the sale proceeds as a cash lump sum, although with some schemes the lump sum is invested to generate a regular income. Since the reversion company cannot re-sell the property until the earlier of your death or you move out, you will receive less than the market value for the percentage being purchased - typically 35% - 60%.
Generally speaking, the older you are when you start the scheme, the higher the percentage of the actual market value you'll receive for the portion of the property you are selling. When the property is sold, the reversion company receives the same percentage of the sale proceeds as that which they originally purchased. Your estate benefits from any rise in the value of any part of the property you may have retained.
We do not typically charge fees for advising upon and arranging a standard mortgage on your behalf, instead we are paid a commission from the lender, known as a procuration fee to cover our costs. If we do charge a fee, this will typically be £250.
Alternatively, you may pay a fee of £125, and and hourly fee of £75 we will refund any commission. A typical case takes 4 hours and therfore the fee would be £425.
We charge fees for advising upon and arranging Lifetime Mortgages / Home Reversion Plans also known as Equity Release Mortgages. All fees will be discussed and agreed at outset. Typically, this will either be a fee of £275, and we will receive commission, or a fee of £550 and we will refund any commission.
This is a Home Reversion Plan. To understand the features and risks, ask for a personalised illustration