A home reversion plan allows you, as a homeowner, to sell off a portion of your home in return for a cash lump sum or regular income.
Put simply, you get the cash and have rent free accommodation until the plan ends, at which point the property is sold and the proceeds split between you and the reversion provider. The scheme sets in place a plan, agreed between you and the reversion provider, with each of you owning a proportion of the property.
So, say you arranged for a 50% equity release, you would be eligible for 50% of the proceeds of the sale. Were you to arrange a 100% equity release, you (or your beneficiaries) would not get any of the sale proceeds.
There are many things to consider when it comes to home reversion and, naturally, many questions. That’s why we recommend you sit down with an Eclipse adviser in North Devon so we can talk you through the process of home reversion and explain the various options available.