Home Reversion Calculator (Oct 2021)

When calculating the amount you can get from the home reversion scheme, you need to use the equity release calculator which requires you to:

• Input the age of the youngest homeowner (which is, 60 years)
• Input your gender and marital status
• Input your residence’s location
• Input the estimated value of your estate
• Input the proportion of your property that you’d like to sell to the equity release provider

Well, they work by you selling a part or your entire estate to the home reversion companies. The scheme is accessible to homeowners aged 60 and above, those with estates worth more than £70,000 and within the remits of the UK.

Unlike with the lifetime mortgage plan, you don’t pay any interests. However, when you pass away or move into residential care, the plan provider will sell your home, take his/her proceeds (percentage of ownership) and the remaining balance will go to your beneficiaries.

It’s an equity release plan option. It allows homeowners aged 60, those with estates worth more than £70,000 and those within the remits of the UK, to unlock the capital tied up in their homes. Unlike the lifetime mortgage, the home reversion plan allows you to sell a part or all of your estate to your plan provider.

When you die or get into residential care, the equity release provider puts up your residence for sale, takes his/her of the proceeds and then the equity remaining goes to your heirs.

You can use the cash you get from the home reversion scheme to:

• To work on your home improvement projects
• To pay for the long-term care expenses
• To clear any impending debts
• To pay for your long-awaited vacation dreams
• To make an investment
• To purchase mobility equipment
• To buy out your spouse