Description: Switch Equity Release Plans
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Switch Equity Release Plans
Home reversion has seen a steady decline in popularity over the past 5 years despite the lifetime lease option. A home reversion plan is a form of equity release scheme whereby one exchanges part of their property for a lump sum of money or income. Comparing most of the features of this plan with features of other plans, this has proven a less attractive plan and most people will avoid it and instead go for the more flexible options which are the lifetime mortgage range of schemes.
With a home reversion plan, one becomes a co-owner of their property with the person they sell it to and therefore have limited enjoyment of the appreciation of the price of this property. In fact, one can never count on any profit in the escalation of property value on the portion they do not own anymore. This limited co-ownership is a major turn off for most potential equity release applicants as sharing the ownership of a home they own does not sit comfortably with most.