As is true with any financial scheme, there is no single home reversion plan that suits everyone, irrespective of their needs. The home reversion plan that works best for you will depend entirely on your circumstances and your priorities, as different plans have different features. Let’s look at the two main home reversion plans currently available on the market – the Bridgewater flexible release plan, and Hodge Lifetime shared growth option.
A subsidiary of Grainger Trust PLC, Bridgewater Equity Release offers a home reversion plan with flexibility at its heart. The flexible release home reversion plan allows clients to sell a portion of their house in exchange for a lump sum equity release. Clients can sell anything from 25% to 100% of their house in exchange for a cash lump sum.
The minimum amount that can be released is 25% or £25,000, depending on which is lesser. Most home reversion plans are available after the age of 65 years, and this is also the minimum applicant age for the Bridgewater flexible release plan. If you do not release 100% equity, you have the option of releasing more at a later date.
Other flexible options include adding a House Price Inflation Protection and an early vacancy guarantee, which provides some protection to your beneficiaries in case the plan ends early. Bridgewater flexible release plan does not offer enhanced rates for impaired life applicants. This home reversion plan is protected by the Financial Services Authority.
The second plan in question – Hodge Lifetime is a subsidiary of the Julian Hodge Bank, which happens to be one the founders of SHIP (Safe Home Income Plans) which is now rebranded as the Equity Release Council.
Hodge Lifetime has been in the home reversion market since the 1960s and has become one of the best known names in the industry. Hodge’s home reversion plan allows clients to sell between 30% to 90% of their property, and has a minimum property valuation of £100,000. Both Hodge and Bridgewater home reversion plans are available in England, mainland Scotland and Wales.
The home reversion plan that currently offers the maximum release is the Newlife Home Reversion plan. This plan allows a maximum release of 100% of the property value (99.9% in Scotland) with a maximum property valuation of £1 million and a minimum property valuation of £75,000.
As we have seen, different home reversion plans have different terms and features. While some may have a smaller minimum release amount, others may offer the highest property valuation. Which home reversion plan works best for you will therefore depend not so much on the plan itself, as it would on your own priorities and requirements.
For the best home reversion plan quotes, contact 0800 678 5159 to speak to a qualified home reversion adviser.
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