With a home reversion plan, you agree to sell a percentage of your property (up to 100%) for an agreed amount and have the right to live rent-free in your home for the rest of your life. You can receive this as a lump sum, an income, or both.

If you choose to sell all of your property to a home reversion company, you will usually receive between 25% and 50% of its current market value, depending on your age. When you die, the percentage of your home that you sold to the home reversion company belongs to them along with the sale proceeds. If you sell your entire home, the company owns your home outright, including any increase in value since you agreed to sell it. 

Some schemes offer a rebate for your family if you die within the first few years of signing up to a home reversion scheme.

To understand the features and risks associated with such products, please ask for a personalised illustration. 

Your home is worth £400,000. You agree to sell the whole of your property to the home reversion company for half its current value, so you receive £200,000. When you die, the house is owned by the home reversion company, so there is no residual value to pass on to your beneficiaries. 

To understand the features and risks associated with this type of mortgage, you must ask for a personalised illustration.