Home Reversion
Equity release is a way of getting cash from the value of your home without having to move out of it. The equity (value) you have in your home is its open market value less any mortgage or other debt held against it. There are two main types of equity release scheme – lifetime mortgages and home reversions which are regulated by the Financial Services Authority (FSA).
With a lifetime mortgage you: take out a loan that is secured on your home (that is, the lender knows they can get their money back by selling your home); continue to own your home, although you will have to pay back the mortgage on it; repay the mortgage from the proceeds of the sale of your home when you die, or if you move out of it (perhaps to a care home).
With a Home Reversion Plan you: sell all or part of your home to a reversion company or an individual; no longer own your home, but continue to live there as a tenant of the reversion company or individual for the rest of your life or if you move out of it (perhaps to a care home). At which time the home is sold. The plan will enable you to free up all or part of the available cash in your property as a tax-free lump sum.
At Swift Capital, we cannot offer a Home Reversion Plan or life time mortgages, however, Acrewood Group Plc are able to offer some of these equity release arrangements. Acrewood is authorised and regulated by the Financial Services Authority and offers two plans:
Maximum Cash Plan – Rent Free
This Home Reversion Plan frees up all the available cash in your property immediately, as a tax-free, lump sum. This enables you to live in your home, rent free, for the rest of your life.
The amount we pay is less than the vacant value of the property and depends upon your age being a minimum of 65 years (and that of your partner, if you apply jointly) and upon the location and condition of your property
Maximum Cash Plan Plus - Rental Option
Acrewood has pioneered the Rental Option, which delivers a Home Reversion Plan regulated by the Financial Services Authority to those as young as 50 and a higher price paid.
Rest assured that the rent agreed will be set at the start of the plan, below the market rent, at a level you can afford and will only be reviewed every two years. For total peace of mind, any rent increases are capped not to rise above the Retail Prices Index (RPI)
As the Home Reversion Plan above this frees up all the available cash in your property immediately, as a tax-free, lump sum and enables you to live in your home, for the rest of your life or until you move out.
The amount paid is less than the vacant value of the property and depends upon your age, and upon the location and condition of your property.
A Home Reversion Plan is a long term and complex legal arrangement and we would recommend that before entering into any agreement you seek independent legal advice.
If you are considering a Home Reversion Plan, visit Acrewood who are well versed in providng these types of equity release arrangements or your independant IFA.
Contact Acrewood now
- Telephone Free: 0800 035 0094
- Online: It´s simple, it´s quick. 
- Email: Acrewood
