There is a short answer to this question, and a more involved answer. The short answer to this question is yes, it is possible to move to a different house if you have a home reversion plan on your current home. However, the actual feasibility of moving house will depend on the individual case as there are several important factors to consider.
The fact is that moving house if you have an existing home reversion plan on your current property can be quite complicated. Home reversion involves selling a portion of your property in exchange for a cash lump sum which can then be spend as one wishes. This means that part or full ownership of the property is transferred to the home reversion provider.
Transferring this joint ownership from your existing house to the new one can be tricky and may involve a change in percentage of ownership. Whether this percentage remains the same in the new property depends on the plan as well as on the valuation of the new property. Home reversion plans allow for a house move provided the new property meets certain specific criteria. Some plans may also have additional charges to move the plan to a new property.
Most importantly, the house you are moving to will need to be able to provide sufficient security for the home reversion plan. Many people choose to move to another house with an aim of downsizing. If the new house is lower in value than the original house, the home reversion provider may require a repayment of some of the loan. The provider may therefore retain all or part of your share of the profit made from the sale of your existing house towards this end.
If you are not downsizing and are moving to a more expensive property than the original house, the percentage of the home reversion provider can be appropriately reduced. The additional amount needed to purchase the house must be arranged by you. Also, any costs associated with the move and transfer of the home reversion plan, such as legal fees, solicitors fees etc. are to be met by you.
Each home reversion plan has specific criteria that apply to a home move. Provided the new property meets these criteria, it is possible to move home. However, whether the move is feasible depends on a number of factors. Moving house with an existing home reversion plan is possible, but whether it is practically possible depends on the particular property.Tags:Home Reversion, Home Reversion Plan, Home Reversion Provider