There is a better alternative to home reversion plans for some homeowners. It's called sell and rent back. Home reversion plans allow older homeowners to raise capital without moving home...At a price. Typically they involve selling all or part of your home in exchange for a capital sum and/or income. The most common arrangement is to
	give up a share in your property for a lump sum. But there are two drawbacks to these plans that you may find prohibitive. You can't access most of the value locked in your home through a home reversion plan when you need it. Now. And they are also very expensive. For a 50% share of your house's current value, the home reversion company gets 50% of the proceeds when the property is finally sold. And there are all sorts of other charges to look out for. Some are difficult to understand.
"the major flaw (with home reversion plans)..is that homeowners risk giving up quite a lot of equity for a surprisingly small amount...Many plans are too complicated and offer poor value"  www.thisismoney.co.uk
Generally speaking the shorter your life expectancy on taking out the plan the better the deal you get. Home reversion plans are therefore probably best suited to homeowners of advanced years - if, and only if,  you can get to grips with the true cost of the plan. Financially speaking trading down to a smaller or cheaper property makes better sense. The problem is that you may want to remain in your home. The emotional pull of a much loved family home can be irresistible. It may have taken many years to get your house looking as it does today. You could have spent thousands in the process of getting it the way you like it or adapted to your needs. If you're reluctant to give up your home would you be interested in learning a bit more about a better alternative to home reversion plans?   A better alternative to home reversion plans The better alternative to home reversion plans comes not from finance/reversion companies but from property companies. Like home reversion schemes, with a sell and rent back scheme technically you become a tenant. Where they differ is that with a home reversion plan you can normally continue to live in your home rent-free or, less often, in return for a nominal rent. With a sell and rent back scheme you have to set aside a portion of the capital sum received as rent. However releasing equity through a sell and rent back scheme will result in a higher initial payout. Possibly up to 90% of the value of your home, depending on the level of rent you can pay or want to pay.	Other reasons why sell and rent back is a better alternative to home reversion plans.. 1. Reversion companies can be picky about the types of properties they'll consider. After all, they're not really in the property business. Sell and rent back is a better alternative to home reversions plans because the scheme is built around you and your needs. 2. Sell and rent back schemes are also a better alternative to home reversion plans if you want to realise more than 60% of the value of your home. In fact the true cost of reversion plans can be difficult to fathom. 3. Sell and rent back arrangements are typically open to a much wider group of people than reversion plans. Particularly if you are under 55 or even less than 60  sell and rent back is hands down a better alternative to home reversion plans. 4. Sell and rent back is a better alternative to home reversion plans if you can foresee a time when you'll want or have to move home. 5. It's true that sell and rent back is a better alternative to home reversion plans for people unconcerned about leaving all or part of the value of their property to family. However. for those that do, be careful to check the true cost of reversion plans as interest charges may wipe out any future proceeds. 6. You may find a sell and rent back provider who is happy to share the proceeds of your property with you on its re-sale. This allows you to claw back part of the equity you may have lost on the initial sale.
Is sell and rent back a better alternative to home reversion plans for you? Sell and rent back schemes might be a better alternative to home reversion plans for some homeowners. Much will depend on your current circumstances and plans and the flexibility of the sell and rent back provider to customise a plan to your requirements. To find out more about how we can help you release equity with sell and rent back go here for more information and help.

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