How do home reversion schemes work?
A lifetime mortgage is the most popular kind of equity release but there is another plan available called home reversion, which operates in an entirely different way. You need to be 65 or over to qualify, and instead of the property remaining 100% in your name, you sell all or part of your property to a reversion company in exchange for a cash lump sum, with no interest to pay on the money released, and no monthly payments to make. When the plan comes to an end, the home reversion provider takes its percentage share of the sale proceeds.
For example, if you sold half of your property to the reversion company, when you pass away or move into long-term care the money from the sale of your home would be split 50:50 between them and your estate.
Live in your home rent-free
Even though you will no longer own all, or part of your house, you have the right to remain in your own home rent-free for the rest of your life.