“I knew I had to pay for my own care, so I had thought of a house reversal plan before the drop in property prices. What`s annoying is that if I pull out the plan now and real estate prices recover, it will be the reversible company that will benefit, not me. “- Borrowing moira against the value of your home without having to afford to repay by adding interest to your mortgage. For this reason, equity liberalization programs tend to be seen as a last resort for homeowners. But you will no longer own your home (or only own part of it). Home Conversion plans are available throughout the UK. In general, home conversion systems don`t offer the best value for money, especially since you never get the full market value of your property. The older you are when you start a home conversion scheme, the higher the percentage you get from the market value of your home. The amount of money you will receive if you opt for a return plan depends on your age and health. The older you are when you buy a plan, the closer you get to market value.

In return, the provider gives you the right to continue living there without rent until you die or move into long-term care. Home conversion plans are very different from lifetime mortgages. For the first, part or all of the house belongs to a business, although you retain the right to live there. With a lifetime mortgage, 100% of your home is yours. It is a kind of equity release program that allows you to use some of the money that is tied in your home. Once you understand the difference between the types of capital sharing plans, it`s time to take a closer look at the plan that might be right for you. If you are considering a transformation plan for the home, think carefully about the pros and cons. They have the right to continue living in the house under a lifetime lease. To understand the features and risks of a home conversion plan, ask for a custom illustration. The return home includes a business that buys your home or part of it. If you now want a lump sum or income and want to stay in your home and you don`t need anyone (for example.B. children or other family members) to enjoy the full value of your home, a home reversal might be worth considering.

There is no interest to pay with a home conversion plan, as this type of scheme is not a loan. When your home is finally sold, the supplier will take their share of the product. For example, if you sell 50% of your home to a home conversion provider, they take 50% of the sale price. The remaining 50% goes to your property. Think about subsidized grants or loans that might be available if you`re raising capital to upgrade or modify your home. No interest is calculated and the percentage sold remains fixed until the end of the duration of the Home Reversion Plan. At that time when the last owner died or went into permanent care, the house is sold, the proceeds being distributed according to the percentages initially agreed with the lender.. .