Home reversion schemes requires the owner to sell part or all of their property. The capital given in this scheme can be a greater lump sum offered by their counterparts - the lifetime mortgage. It is a common misconception that the property is valued at lower than normal. However, the valuation should be undertaken & estimated by an independent evaluator. One positive aspect of home reversion is the aspect of guaranteeing an inheriatnce to your heirs. For many this is of paramount importance & effectively rules a lifetime mortgage a non-starter.
The home reversion scheme offers a sense of re-assurance which is not offered significantly by many other equity release schemes. Enhancements in medical science have resulted in human population increasingly living much longer. Thus, age of the youngest homeowner plays a major role in this type of equity release plan. The simple equation is that the older the property owner, the greater lump sum offered as a release of equity.