We have seen a decline in the Home reversion market in recent years. While equity release in general seems to be a rising trend, home reversion has not seen a similar surge in popularity. This may be due to the fact that a number of more flexible plans and schemes are now available on the market that mitigate the disadvantages and risks associated with home reversion plans.
As such, many companies that used to offer a home reversion calculator on their website have now chosen to withdraw the application. For instance, Retirement Plus, offered a home reversion calculator which is no longer available. Bridgewater also offered a similar tool on their website, which has also since become unavailable.
While home reversion schemes do prove to be the right solution for some people and do have their own advantages, they also have disadvantages. For instance, home reversion providers usually offer discounted prices, so the client does not receive full market value of the share they sell. Should the price of your house rise significantly in the future, you receive no benefits of the rise on the share you have sold.
Also, in case of early death, home reversion plans offer poor value as you end up losing a substantial portion of the house in exchange for very little. On the other hand, a number of new lifetime mortgage plans now offer inheritance protection and a guaranteed inheritance. As people become more conscious of their savings and assets, plans that offer such guarantees naturally become more popular.
Having said that, it is also worth mentioning that home reversion plans can have some significant benefits, as well. They generally offer a bigger lump sum than their lifetime mortgage counterparts on a standard health basis. You can protect the equity in your home, and leave a guaranteed inheritance by selling only a portion of the property. Also, since you sell a part of the house in exchange of the equity, there is no interest to be paid on the lump sum or the monthly income.
Many companies that offered enhanced home reversion plans have now been withdrawn from the market. These include companies like Home & Capital, Hodge Lifetime, Retirement Plus, and Partnership, who offered an enhanced plan which offered a larger lump sum to clients in poor health.
The enhanced equity release market is now dominated by the range of enhanced lifetime mortgage schemes form the like of Aviva, Partnership and more2life.
To request further information on enhanced equity release schemes or home reversion plans call today on 0800 678 5159.Tags:Aviva, Bridgewater, Enahnced Equity Release Schemes, Enhanced Equity Release Market, Enhanced Home Reversion Plans, Enhanced Lifetime Mortgage Schemes, Enhanced Plan, Equity Release, Flexible Plans, Guaranteed Inheritance, Hodge Lifetime, Home & Capital, Home Reversion Calculator, Home Reversion Market, Home Reversion Plans, Home Reversion Providers, Home Reversion Schemes, Inheritance Protection, Lifetime Mortgage, Lifetime Mortgage Plans, more2life, Partnership, Retirement Plus