HOME REVERSIONS

With a reversion scheme you agree to sell all or part of your property for an agreed amount. You can this as a lump sum an income or both. The money you get will not reflect the full market value at the time you take it out the scheme. This is because the reversion company will not get its money back until you die or move into a care home or another property. Usually you will get between 20% and 50% of its current market value depending on your age (and your partner's).

When you die the percentage of your home that you sold belongs to the reversion company. If you sold your entire home to the company it will own your home outright including any increase in value since you agreed to sell it. If you sold only a percentage of your home to the company the rest will past to your estate. Some schemes offer a rebate for your family if you die in the first few years of signing up to a home reversion scheme.

Here is an example

Your home is worth £100,000. You agree to sell half your property to the reversion company for half your current value. You receive £25,000 now. When you die the reversion company owns half the house and the other half will pass to your estate. So if your house is sold for £150,000 , £75,000 will go to the reversion company and £75,000 will go to your estate.

David Kingswood Retirement Solutions are a small company. You would be dealing with one person with over 40 years experience in the market place.

All our advice is individual to you needs, there is no obligation at all and all advice is unbiased