Use the FREE Home Reversion Calculator
See how much cash you can release from your home.
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Use the FREE Home Reversion Calculator
See how much cash you can get from your home.
Did You Know? Every 12 minutes a homeowner over 55 in the UK unlocks £91,667 tax-free cash.
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All You Need to Know About the Home Reversion Calculator
You retired. After 20 years working for the government, you need a break. It’s been your lifelong dream to vacation in Thailand. However, with the mere pension funds that the government offers, you don’t think you can make it to pay for your holiday and still maintain your lifestyle. After researching for a while, you learn about the equity release plans. After weighing your options, you decide on taking out the home reversion plans rather than the lifetime mortgage.
Nonetheless, you don’t know how much you can earn from this lucrative mortgage plan. Well, here’s a comprehensive guide to the home reversion calculator.
How to Use the Home Reversion Calculator
Home reversion plans were the forerunner of the modern day’s lifetime mortgages. They’ve been declining in popularity for some time now, since the lifetime mortgage schemes become the talk of the town, offering significant lump sums and a range of flexible features that plan providers tailor to meet your needs.
Unlike the lifetime mortgage plans that work by offering you a cash lump sum or monthly income from the equity in your estate, the home reversion plans work by you selling 20% to 100% of your property. The home reversion provider, in turn, provides you with a tax-free lump sum and a lifetime tenancy to remain in your estate until you pass on or move into permanent care.
Unlike with the lifetime mortgage also, with these mortgage plans, you don’t pay any interests. When you pass away, the plan provider puts up your estate for sale, takes up his/her share, and the remaining goes to your heirs.
So, how can you know the amount of cash you can expect from a home reversion plan? Well, you can do that by using the home reversion plan calculator.
The equity release home reversion calculator will require you to input:
These are the criteria that most equity release providers use when figuring out the amount you can release.
Home Reversion Plan Calculator
Our Most Commonly Asked Questions
A home reversion1 could be a great way to help you live your later life to the full.
By borrowing a tax-free lump sum you could be able to fund home improvements, help younger family members get on the property ladder2 , or simply sustaining your lifestyle in retirement.
How much you can borrow depends on a number of factors, including your age, the type of property you own, and its value.
- You have to get advice before release equity.
- Check for plans that have a no negative equity guarantee,3 so you’ll never owe more than your home’s value.
- It reduces the value of your estate.
- The initial consultation is free with no obligation.
- The most popular form of equity release is a lifetime mortgage, which is a loan secured against your home. Note that you will still own your home.
A home reversion is a way of releasing the wealth tied up in your property without the need to move.
With home reversion products, if you are over the age of 55, you can either borrow against the value of your home or sell all or part of it for a regular monthly income, a lump sum,4 or the facility to get at equity as and when you like or a combination of these options.
Use our free reverse home reversion plan calculator to see how much you can release now.
Although there are many different plans available, they can all be split into four categories of reverse mortgage schemes.
Lifetime Mortgage Loan
You release a lump sum from the value of your property, by taking out a mortgage secured on your property (provided it’s your primary residence) whilst retaining 100% ownership of your home. This amount, plus any interest accrued, (you can choose to make repayments) is repaid from the sale of your property when you pass away or move into long-term care.
Drawdown Lifetime Mortgage
This works similar to Lifetime Mortgage but with a cash reserve/draw down option allowing you to withdraw amounts at a frequency you choose up to a specified amount of years, or until the reserve has been used up.
Interest-Only Lifetime Mortgage
You get a lump sum and pay a monthly interest on the loan, which can be fixed or variable, rather than allowing the interest to roll up.5
The amount you originally borrowed is normally paid back when your home is eventually sold.
Home Reversion Plan
Here, you sell some or all of your property to a home reversion provider in exchange for a lump sum of money or payments, whilst keeping the right to living in your home, rent free, for as long as you live, but you have to agree to preserve and insure it. At the end of the plan your property is sold and the sale proceeds are shared according to the proportions of ownership.
You are free to use the money on almost anything. There are many reasons for equity release from your home and here are a few of them.
Common Home Reversion Uses:
- To supplement your pension income to cover living expenses
- To settle a repayment mortgage or clear the balance on an interest-only mortgage
- To improve your standard of living
- To see your family enjoy their inheritance while you’re still here
- To carry out some home improvements
- To take that holiday of a lifetime
- To help your children onto the property ladder
- To pay off other outstanding debt and lower your outgoings every month.
Home reversion plans are not right for everyone and it’s important that you fully consider your options and receive independent financial advice before making a decision. It’s also important that, if you do decide to use a home reversion product, you pick one that meets your needs.
Remember that taking a home reversion is generally a long term option. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without any penalties. A financial adviser can help you with the plan that is right for you.
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