When would the plan need to be repaid
With a home reversion plan the property will normally be sold on death or following a move into permanent long-term care. The home reversion provider will retain their percentage of the sale proceeds in accordance with your agreement and the remainder will pass to your estate.
How much money will I owe the provider when the plan finishes?
When the property is sold the provider will retain the percentage of the sale proceeds as agreed at the outset of the plan. For example if you originally sold 40% of your property to a provider, then they will retain 40% of the sale proceeds when the house is sold.
As we can't predict the future value of your property, we can't predict the exact long-term cost associated with this plan. Property prices could be higher or lower than they are today.
How much money can I borrow via an equity release plan?
The amount you can borrow depends on the value of your property, percentage of the property sold, age, sex, health and whether you are single or a couple. The older you are when you start the plan the more you will usually receive for the share of your property sold.
What impact would changing house prices have on my plan in the future
You and the home reversion company share any increases or decreases in the value of your property.
What impact will equity release have on my inheritance tax liability
A home reversion plan could reduce your inheritance tax liability, as the proportion of the property you sold would fall outside your estate for tax purposes.
Will I still be able to leave an inheritance?
If you sell your entire home then there would be no cash due from the eventual sale of the property. However, if you only sell part of your property then the value of the share you retained could be used to provide an inheritance.
As we can't predict the future value of your property we can't predict the amount that could be available as an inheritance. Property prices could be higher or lower than they are today when the property is eventually sold.
