Home Reversion Equity Scheme

Equity release is a provision in which you can unlock some of the cash which is attached with your home and the best thing is that it is tax free. This money can be used to as a source of regular income or can be used for home repairs or any such requirements. You can also ask for a lump sum of money to sponsor your holiday, help your children or let the family enjoy the property as the inherit it. This scheme is generally given to those who have owned the home for a long time and therefore the value of the home would be much more than what it was when you bought the home. Thus you can release the cash on the equity built up on your home for your needs.

Equity release scheme is of two types, lifetime mortgage and home reversion. In case of home reversion is schemes you sell a part of your home or the whole home to a company with the right to stay in the home. This is different from lifetime mortgage in which you remain to be the owner of the property. The money can be given to you as a lump sum amount or as a regular income as per your need or instructions. When the home is sold, a part of the sale is given to the investment company as agreed upon by you and the remaining amount is given to you or your estate. The disadvantage of this is scheme is that you will have no right over the sold part of the home and any increase in the price of the sold part of the house to the investment company. While taking up this plan it is advised that you consult a financial advisor as well as take consent from your family members.