We look after many planholders, and not all home reversion plan agreements (or life tenancies) are exactly alike. However, there are similarities and the questions on this page are those we are asked most frequently. They may be helpful if you are already in a home reversion plan with us or are considering one with your independent financial adviser. If you have any specific questions, please feel free to contact us.
Our plans are designed to last until the planholder dies (or all the planholders, if there are more than one), or they move out of the property permanently – for example to live with family or to go into long-term care.
No. With a home reversion plan, you are not borrowing money and the lump sum you receive is not debt. Unlike a mortgage or lifetime mortgage there is no future repayment to make and no interest is charged. Instead, you sell some or all of your home to us and then receive that money upfront, and in most cases this should be tax-free.
You don’t have to sell all of your property to take out a home reversion plan. Many of our customers retain up to (and in some cases more than) 50% ownership. Retaining equity gives you the option to pass the value to loved ones in your will or to release more equity in the future while taking advantage of any future growth in house prices.
Our home reversion plans are available to either one person on their own or two people living together. It makes no difference whether you and your partner are married; the arrangement will be the same providing both planholders are eligible from the outset.
You can move house and transfer your home reversion plan to a different property, providing the new property meets our criteria at the time. We would need to discuss this with you to make sure your next home is suitable for the plan. Of course, you’d need to pay certain costs involved in moving, such as sale fees, legal fees and stamp duty if it applies. We work with our clients on an individual basis and will always try and help you adapt your arrangement to your changing needs through later life.
No. Home reversion plans do not require the payment of rent to the provider. You are responsible for bills and maintenance as normal, and if you live in a Leasehold property (such as a flat with a management company) you will still be liable for any ground rent or service charge which is associated with the property.
Yes, planholders typically need to be over the age of 65.
Even though we will own some or all of the equity in your home, you will carry on living there just as before. You’ll receive your lump sum payment from us, tax free, and will never have to pay rent to live in your home. You will hold a leasehold title, which gives you the right to occupy the property and you will be further protected by the terms of the plan. Our agreements are designed to protect you and provide you with the security of living in your home for the rest of your life or if you ever need to move into care.
Yes, you’ll need to look after the property while you remain living there, just as you would if you were still the homeowner. But we’re always on your side, to help you with advice on home maintenance, finding tradespeople if needed, and guiding you if you need to claim on your insurance.
If you are vacating temporarily, such as going on an extended holiday or for medical care, it’s still your responsibility to maintain the property. As is normal with home insurance policies, you would need to make sure the insurance company is informed. In these situations it’s also prudent to have someone keep an eye on your home while you’re away.
Absolutely – there is no restriction for guests or short-term visitors, generally for up to a month.
Yes, this is possible. Where you wish to have someone to stay for the medium or long term, such as a family member, carer, or partner, you would need to speak with us first, but we will always try to be accommodating. In all cases, the new occupant would need to sign a waiver agreement which gives them the right to live with you. It’s important to remember that should you die, or move permanently out of the property, the plan will end and the additional occupant would have to move out of the property. We would handle this situation carefully and sensitively, treating the additional occupant with respect, dignity and fairness at all times, allowing them a reasonable time to find alternative accommodation.
A home reversion plan is designed to release money, usually tax free, from the value of your property while you remain in your home for the rest of your life or until you move out permanently. When you die and there is no surviving occupant included in the original agreement, the home reversion plan comes to an end. We will work with whoever you have appointed to manage your estate (for example, executors or personal representatives) to bring the legal agreements to a close and to sell the property. Your estate remains responsible for the property throughout this process, so we aim to be as helpful as possible and to work at an appropriate speed, remaining very sensitive to the needs of those assisting with the transition. We pride ourselves on working smoothly, efficiently and fairly with executors, personal representatives and family members during the plan closure process. Plan agreements normally include a period for handing over the property to us – usually around three months, but we are often flexible in this.
It is a very good idea to let family members or close friends know of your wishes in the event of your death or incapacitation. The best way to do this is by way of a will, but sometimes this can be made clearer by writing a letter of wishes. In our experience, family members and friends who are well-informed find dealing with bereavement less stressful and find it easier to deal with the affairs of the deceased. Having a will and a solicitor to deal with your affairs simply makes things much easier for those left behind, even if you don’t have much wealth. This is particularly true when it comes to property matters. We always do our very best to help in these circumstances, but there’s no substitute for having a plan in place.
If you leave your home permanently, for example to go into care or move in with family, the home reversion plan would usually come to an end. We will take possession at that time and market the property for sale. If you retain a part ownership in your home when taking out the plan, we will discuss with you (or your estate/family if appropriate) how best to manage things. We would typically manage the sale of the property, and divide the proceeds in accordance with the ownership split.
Normally, where there are two planholders, if one person goes into care, then the home reversion arrangement carries on until the second planholder also moves out permanently or dies.
However, if the remaining occupant is under waiver (as opposed to being a planholder), then they would need to move out when you go into care. (Please see “Can someone move in with me on a longer term basis?” for more information)
Yes, you can. However, many of our planholders choose to join our group policy. We have a strong negotiating position on the cost of premiums, we can oversee and assist with claims and we receive no financial gain or commission.
With a home reversion plan you’re selling part or all of your home rather than securing a loan against it. There’s no debt to repay so you will not need to worry about movements in interest rates affecting your plan.
If you only sell part of your home to us then the part you still own can rise or fall in value. If you’ve sold your whole house to us, you will no longer be affected by any movement in property prices affecting your home.
This would need to be by mutual agreement between you and us. If you find yourself in this situation we will work to find a solution that works for everyone
Generally yes, but not necessarily. When someone takes out a home reversion plan it effectively creates a life tenancy – where the planholder becomes a tenant, or leaseholder for life. However, life tenancies (which are sometimes also known as lifetime leases or home for life plans) may be created in other ways, such as with the purchase of a new property, or they may pre-date what are now known as home reversion plans. If you have specific queries it may be helpful to speak to the solicitor that acted for you in the creation of your life tenancy, or we will do our best to point you in the right direction.
The process of dealing with a loved one’s affairs can be very difficult. We are always ready to help talk you through the process. Please feel free to contact us for more information; we’re here to help.
MORE ABOUT TAYLOR WILLIAMS
You can contact us to find out more about Taylor Williams and the home reversion plans we offer.
But before you consider taking out a home reversion plan it’s important you speak to an independent financial adviser.
There’s a lot to think about and they’ll help you make the right decision for you.