Home Reversion Schemes

Releasing Equity from your property.

TO UNDERSTAND THE FEATURES AND RISKS PLEASE ASK FOR A PERSONALISED ILLUSTRATION.

An equity release plan will reduce the value of your estate and may affect your entitlement to state benefits.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Mortgage Simplicity Ltd is an appointed representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Services Authority. Julian Harris Mortgages Limited FSA Register number is 304155. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK

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Think carefully before securing other debts against your home. Buy to let (pure) and commercial mortgages are not regulated by the FSA

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These schemes mean that all or part of your home is sold to an investment company. These are called "Reversion Companies". In return they will give you a cash lump sum, or an income for the rest of your life and sometimes a combination of both.

In technical terms you then become a tenant of the reversion company, although you have the right to live there for the rest of your life rent free or for a nominal rent. This is called a lifetime lease.

This can be complicated to explain, although your adviser will go through your own circumstances and finances with you in great detail to demonstrate precisely how much money you could obtain from your property under this kind of scheme.

Because you are continuing to live in the property and it is unknown when the reversion company will get their money back, you will not get the full current market value of your property. Selling all of your property to the reversion company will mean that you will typically only get between 30% and 60% of its value at the time of sale. Figures are calculated taking into consideration your age and that of your partner's and older people will get more. Men also get more than women because women are expected to live longer.

If you are selling your home along with your spouse or partner, it would only be sold by the reversion company after the last of you dying or moving into long term care. Any money left after the sale would go into your estate as usual, unless you had sold 100% of your property to the reversion company.