The real truth about home reversions.

From: Money Management | Date: February 1, 2007 | Copyright information

When clients enter into a home reversion plan they are completing two simultaneous legal transactions: they are selling all or part of their beneficial interest in the property and entering into a lifetime lease. These two transactions provide two separate benefits: a cash lump sum (or possibly an income) and a rent free lifetime lease on their home.

To appreciate the real value of a home reversion plan it is crucial that advisers and their clients understand exactly how plans are priced, which is usually the source of most concerns. While the home reversion provider pays the ...

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