What is a Home Reversion Plan?
A home reversion scheme is an equity release plan offered by home reversion providers.
You’ll sell all or part of your home to the provider in return for a tax-free cash lump sum.
The value you get will be below market value, but you get to stay in your home as a life tenant in return.
How Much Cash Can You Release With a Home Reversion?
The amount of cash you can release with a home reversion plan will depend on how big a share in your property your are willing to sell to the provider.
Typically, you can get between 20% and 60% of your home’s value.
Your age also affects how much cash you can release, the older you are, the higher the percentage value you can receive.
How Do You Calculate a Home Reversion?
You can calculate a home reversion estimate by using a home reversion calculator like the one below.
It’ll require you to enter some basic details such as:
- The younger homeowners age.
- Your marital status.
- Your gender.
- Your home’s location.
- The estimated value of your home.
- The size of the share in your property your are willing to sell.
The calculator will then work out an estimate for you within a few short moments.
How Does a Reversion Company Calculate Its Offer?
A home reversion company calculates its offer using its own criteria.
The main criteria that they use are your age and property value.
Each deal is calculated individually, and the exact amount you can get will depend on your circumstances.
What is a Home Reversion Calculator?
A home reversion calculator is an online tool that uses your age and property value to give you an estimate of how much equity you could release and how much it may cost you.
A home reversion calculator does not include an interest calculation because your are not charged interest1 on home reversion plans.
How to Use a Home Reversion Calculator
To use a home reversion calculator, you’ll need to enter your details online.
- The age of the youngest homeowner (this must be 60 or over).
- The estimated value of your home must be over £70,000.
- Your property’s postcode to confirm it’s located in the UK.
- If your application is individual or joint.
Once you press submit, your results will be displayed and can also be emailed to you.
Things to Know About Your Results
It’s always pertinent to know that the results you receive are only a guide and are not the same as the value you could be offered by a provider.
A calculator can’t get the same amount of detail as a proper application to assess your individual situation precisely enough.
Where Can You Find a Home Reversion Plan Calculator?
You can find a home reversion plan calculator right here on our page. Why not try it now!
Our calculator is quick and simple to use; enter your details, hit submit, and receive your results in seconds.
How Much Can I Receive With a Home Reversion Plan?
You can receive between 20% and 60% of your home’s market value2.
This will depend on your age, property market value and how big a share in your home you want to sell.
How Will I Receive My Money?
You can receive your money as a lump sum once-off, or regular access to a cash facility.