Have you always wanted to expand the quality of life you have right now, but you aren’t sure how to really go about that? What about if you have already paid off your home? You are sitting on a lot more equity than you think, but it’s probably safe to assume that nobody has ever told you what you could do with it. You just wanted to pay off your house and live in it forever. However, if you looked at a home reversion plan, you would be able to have the best of both worlds — extra money for whatever purpose you wanted, along with being able to stay in your home. There are a few things that you need to know about home reversion.
Simply put, a home reversion plan is where you actually sell your home or a percentage of your home to a reversion company. Don’t worry; you aren’t going to be put out on the street! You retain the rights to live in it rent-free for the rest of your life. The money that you get in return for selling your home to them can be paid out in a lump sum, a monthly income, or even both at the same time.
Keep in mind that the reversion company has to often wait a long time to sell your home, so you will not get full market price for your home. Still, the extra money that you receive can still boost the quality of life that you enjoy. It’s going to be up to you to crunch the numbers as they relate to your unique financial situation in order to see if this is a decision that you should actually make.
Still, many homeowners that have turned to home reversion schemes have been pretty pleased with the results. The reversion company will give you a higher percentage of the property’s value if you are older than if you are younger. If you are 65 years old currently, then you have a longer life expectancy than someone in their 80’s.
There are numerous benefits to a home reversion plan, but you have to look at the drawbacks as well. This is one thing that you will not be able to leave to your children or any other beneficiaries of your estate. So if you’re worried about something like that, you might want to keep looking at other options. Still, if this isn’t an immediate concern, you would really do well to look through the options for yourself. Good luck!