Secure Your Retirement Years with a Home Reversion Plan
Retirement can be happy or stressful depending on your financial situation. If you have saved enough during your working years, then you do not have to worry about the finances. But of you have not then there are a few schemes that you might look into in order to make your retired life comfortable financially.
One of the plans is home reversion plan. If you have heard of the equity release plans then you have a fair idea about this plan. A home reversion plan is a form of equity release plan where you can release equity on a part or on the entire property and get a tax exempted cash payment in return. The minimum age at which you can go for a home reversion plan is 65. But there are a few criteria which, if you can fulfil them, will allow you to avail the plan at a lower age.
Your home will be pledged to the equity release provider and you can stay there as long as you wish. Your home will be taken over and sold to realize the amount after your demise. If you do not release the complete amount on your home, then you and your family after your decease will get the benefit of any increase in the property's value.
There are two kinds of home reversion plans - discounted home reversion and non-discounted home reversion- that you can opt for. In the first plan, you do not get the full value of your property. The equity release provider pays you for a portion of your of the property at a rate lower than the market price and the difference is adjusted after the property is sold. In the second scheme, you will get the full money that your property is worth. The provider's share in your property will increase by a fixed rate each year up to a maximum share that is specified at the time you enter into the contract.
Like everything else in life, there are a few good and a few bad aspects of this wonderful plan. If you do not release the entire value on your home, then you will be able to leave an inheritance for your children. But you will not get the full market value of your house. To get a fair idea about the amount of money that you can expect from a home reversion plan you can take the help of an equity release calculator.
One of the plans is home reversion plan. If you have heard of the equity release plans then you have a fair idea about this plan. A home reversion plan is a form of equity release plan where you can release equity on a part or on the entire property and get a tax exempted cash payment in return. The minimum age at which you can go for a home reversion plan is 65. But there are a few criteria which, if you can fulfil them, will allow you to avail the plan at a lower age.
Your home will be pledged to the equity release provider and you can stay there as long as you wish. Your home will be taken over and sold to realize the amount after your demise. If you do not release the complete amount on your home, then you and your family after your decease will get the benefit of any increase in the property's value.
There are two kinds of home reversion plans - discounted home reversion and non-discounted home reversion- that you can opt for. In the first plan, you do not get the full value of your property. The equity release provider pays you for a portion of your of the property at a rate lower than the market price and the difference is adjusted after the property is sold. In the second scheme, you will get the full money that your property is worth. The provider's share in your property will increase by a fixed rate each year up to a maximum share that is specified at the time you enter into the contract.
Like everything else in life, there are a few good and a few bad aspects of this wonderful plan. If you do not release the entire value on your home, then you will be able to leave an inheritance for your children. But you will not get the full market value of your house. To get a fair idea about the amount of money that you can expect from a home reversion plan you can take the help of an equity release calculator.