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CeRER26 1.2.2 Example home reversion plan

LTs for LIBF

Created on February 11, 2026

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Transcript

Example: home reversion plan

Aleksander is in his 70s and owns a house worth £300,000 with no mortgage. He talks to a home reversion company, which agrees to pay £80,000 for a 50% interest in his house. Aleksander now has £80,000 to spend in any way he wishes and the right to remain in the house until he dies or enters long-term care. At that point, the company will take 50% of the house sale proceeds, with the balance going to Aleksander if he is in long-term care, or into his estate if he has died.