Home Reversion Plan
- Clients continue to live in their home, rent-free, until they die or need to move into long-term care.
- Choice of whether to sell all or a percentage of their home, although they will receive less than the market value for the proportion sold.
- Grainger plc guarantee to buy further shares in client’s home if client chooses to initially sell less than 100%.
- Clients get a lump sum to spend on whatever they want.
- Home reversion can affect the client’s tax position and benefit entitlement; these aspects should be discussed fully with the client, together with the costs involved.
- Potential for leaving an inheritance by not selling all of the home, although it will still reduce the amount of inheritance the client is able to leave.
- As the reversion provider, Grainger plc will have full legal ownership of the property. When the plan ends they will sell the property, keep their share and pay the remainder, if any, to the client or their estate.
- Clients may be able to transfer their plan to a new home as long as it meets the reversion provider’s criteria for acceptable properties.
- Clients can buy back the property if they want to end the plan early, although this will be based on the full market value at the time and may cost substantially more than the amount they received under the plan.
- Inheritance Protection Guarantee helps protect the value of the estate if a client dies or moves into long-term care during the first four years of the plan.
- House Price Inflation Guarantee ensures clients benefit from an exceptional increase in their property’s value over the natural life of the plan.
The Home Reversion Plan is marketed by Aviva on behalf of Grainger plc, the reversion provider. For more information on Grainger plc, visit www.graingerplc.co.uk
| Criteria | Min/Max | Detail | Notes |
|---|---|---|---|
| Age limits | Min age | 65 | If joint, both must be at least 65. |
| Max age | 80 | If joint, this only applies to one applicant | |
| Property value | Min value | £75,000 | |
| Max value | None | ||
| Cash payments | Min payment | £15,000 | |
| Max payment | £100,000 | ||
| Release amounts expressed as | Min male age 65 | 36-41% | The release amount ranges increase in steps with age between 65 and 80. Please see Home Reversion - at a glance for a full breakdown. |
| Max male age 80 | 49-53% | ||
| Min female age 65 | 32-37% | ||
| Max female 80 | 48-52% | ||
Min joint 65 | 30-35% | ||
| Max joint 80 | 47-52% | ||
Additional cash releases | Min release | £10,000 | The minimum cash release is £10,000 or less if they are selling the remainder of the property and this generates less than £10,000. |
| Residency | Property must be in England or Wales. Property must be the main residence and be of conventional construction. | ||
| Product portability | This plan is portable subject to meeting the reversion provider’s criteria. | ||
| Product related fees | There are three main fees that apply to the Home Reversion Plan | |
|---|---|---|
| Valuation Fee | Estimated value of property | Total valuation fee |
| £75,000 – £100,000 | £165 | |
| £100,001 – £150,000 | £195 | |
| £150,001 – £200,000 | £235 | |
| £200,001 – £250,000 | £270 | |
| £250,001 – £300,000 | £295 | |
£300,001 – £350,000 | £320 | |
| £350,001 – £400,000 | £345 | |
| £400,001 – £450,000 | £370 | |
| £450,001 – £500,000 | £395 | |
| £500,001 – £600,000 | £485 | |
| £600,001 – £700,000 | £565 | |
| £700,001 – £800,000 | £655 | |
| £800,001 – £900,000 | £745 | |
| £900,001 – £1,000,000 | £835 | |
£1,000,001 – £1,250,000 | £1,230 | |
| £1,250,001 – £1,500,000 | £1,375 | |
| £1,500,001 – £2,000,000 | £1,520 | |
| £2,000,001 + | Available on request | |
| If a property valuation has been carried out but a client’s application does not go ahead, they will not be entitled to a refund of the valuation fee. | ||
| The re-inspection fee (if required) is £60 | ||
| If clients choose a valuer from the panel themselves, the fees of that valuer cannot be guaranteed. | ||
| Application Fee | £600 (deducted from the amount released) | |
| Legal Fees | Clients are responsible for paying the provider’s legal fees as well as their own. Further information is available in our Costs and Charges | |
| Further cash payments | If a client wishes to take (and be entitled to) further cash payments they will have to pay three fees: 1. Application fee of £150 2. Revaluation fee. Please refer to Cost and Charges for more information 3. Clients will be responsible for paying the provider’s legal fees of £235 as well as their own. | |
| Designed for customers who | Not designed for customers who |
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| Key considerations | Possible alternatives |
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Giving advice
We’ve produced a guide: Getting started with equity release to help advisers who want to do business in this market. Designed with advisers in mind, it gives details of the home reversion plan and our range of lifetime mortgages. It also covers the steps you have to take to become fully qualified.
To advise on equity release you must obtain an ER1 certificate. For more information about the certificate and to download the learning material go to the Chartered Insurance Institute’s (CII) website www.cii.co.uk
Alternatively, you can contact them on
Tel: 0120 8989 8464*
Fax: 0120 8530 3052
Email: customer.service@cii.co.uk
* Calls may be monitored and/or recorded
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