Equity release (home reversion) scheme

yorkielovit

I am considering Equity release (home reversion) scheme as opposed to Lifetime mortgage as preferably don't want a monthly re-payment.

My situation: 40k Mortgage Secured Loan 13k (8 years on both)
Re-payments total £808 from £1,230 pm pension.

Property worth £170.000 and have done a very rough calculation online where I could take £67.500 which would pay off the above debts with some over and of course £800 per month.

I have no dependants and want to live abroad for a couple of years.

Can anyone advise what the real amount the original sum might I end up owing from the eventual sale of property and what realistic time frame to complete the process.

Many thanks in advance

antrobus

yorkielovit wrote: »

...
Can anyone advise what the real amount the original sum might I end up owing from the eventual sale of property ...

Eventual sale? I thought home reversion schemes worked on the basis that you sell the property lor less than its market value in return for some combination of a lump sum and/or a regular income, whilst remaining in your home as a rent free tenant.

So nothing would be owed. Once you've popped your clogs, or whatever, the scheme gets the house and flogs it.

Thrugelmir

yorkielovit wrote: »

I have no dependants and want to live abroad for a couple of years.

Proposing to let the property? Unlikely this will be unacceptable to the lender.

Home Reversion Plans are more suitable for people aged over 70. Are you anywhere near this age.

yorkielovit

Thrugelmir wrote: »

Proposing to let the property? Unlikely this will be unacceptable to the lender.

Home Reversion Plans are more suitable for people aged over 70. Are you anywhere near this age.

No plans to let property and I am 67 so nearly

yorkielovit

antrobus wrote: »

Eventual sale? I thought home reversion schemes worked on the basis that you sell the property lor less than its market value in return for some combination of a lump sum and/or a regular income, whilst remaining in your home as a rent free tenant.

So nothing would be owed. Once you've popped your clogs, or whatever, the scheme gets the house and flogs it.

Thank you. After I wrote question came across a link for a Which article which compared the different options so I assume the rough quote I got was for a lifetime mortgage. Obviously I need to discuss this with actual lenders.

Ronnie_Mackay

Hi, can anybody tell me what Equity Release and Home Reversion actually is?

And who and where would I go to get more information Estate Agent or Specialised Company that deals in this.

I Really need to sit down with someone to explain it to me.

But I am fairly sure It is Home Reversion I am looking for.

I am 65 Single No dependants, nobody I wish to leave my house to No Mortgage House is all mine Lock stock and Barrel.

Any help would be appreciated.
Regards Ronnie

Mortgage_Adviser

Hello Ronnie,


I am an adviser qualified in equiry release so regulary help the customers like yourselves.


Explaining it in a plain English, the Home Reversion Plan means that you either sell the whole or a share of the property ownership to the Home Reversion Plan provider for a lump sum which is less than the marker value of the property.
You would be able to stay in the property for a life time as a tennant.
If the property goes up in value over the time as you are a tennant you do not benefit from the rise in its value.



With the Lifetime mortgage the easiest way to explain it, it is an interest only mortgage but instead of making the monthly payments for the interest, the interest actually gets added to the mortgage so the mortgage increases every month.
If the property is sold, like with the normal mortgage you get to keep what is left from the equity.

kingstreet

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