Home Reversion Plan Calculator | OnlineCalculatorsFree.com

Home Reversion Plan Calculator

Calculate how much you could receive from selling part of your home

Enter Your Details

Age
Your current age in years. Most providers require you to be at least 55-60 years old.
Value
The current market value of your property. Get a professional valuation for accuracy.
Sell Percentage
The percentage of your home's value you wish to sell. Typically between 20% and 80%.
50%
Discount Rate
The percentage discount applied by the provider to account for future appreciation. Typically 20-40%.
35%
Appreciation
The expected annual growth rate of your property's value. Historical average is 3-5%.
5%
Timeframe
The number of years until the property is sold (typically when you move out or pass away).
15 years

Calculation Results

Immediate Cash Lump Sum

$162,500

For selling 50% of your home with 35% discount

Estimated Future Property Value

$1,039,464

After 15 years at 5% annual appreciation

Provider's Future Share

$519,732

50% of the future value after discount

Your Remaining Equity

$519,732

50% of the future property value

Calculation Breakdown

Key Formulas Used:

1. Lump Sum = (Home Value × % to Sell) × (1 - Discount Rate)
2. Future Value = Home Value × (1 + Appreciation Rate)Years
3. Provider's Share = (% Sold × Future Value) × (1 - Discount Rate)

Calculation Steps:

1. Calculate lump sum: ($500,000 × 50%) × (1 - 35%) = $162,500

2. Project future value: $500,000 × (1 + 5%)15 = $1,039,464

3. Determine provider's share: (50% × $1,039,464) × (1 - 35%) = $337,826

4. Your remaining equity: 50% × $1,039,464 = $519,732

Home Reversion Tips

Understand the trade-off: You receive cash now in exchange for a portion of your home's future value.

Discount rates vary: Shop around as different providers offer different discount rates.

You keep living there: You can stay in your home rent-free until you move out or pass away.

Consider alternatives: Compare with equity release schemes to find the best option for your situation.

Advanced Home Reversion Calculator | Plan Your Property Future

Home Reversion Plan Calculator

Estimate how much you could receive from selling a portion of your home now while retaining the right to live there.

Calculator
How It Works

Most providers require you to be at least 55 years old.

Typically between 20% and 80% of your home's value.

Typically between 20% and 50%.

Historical average is about 4-6% per year.

When you expect the property to be sold (typically when you move out or pass away).

Your Home Reversion Results

Percentage Selling: 50%
Current Lump Sum Payment: $162,500
Future Home Value: $1,039,464
Provider's Share at Sale: $519,732
Your Beneficiaries Receive: $519,732
Effective Annual Rate: 3.85%

Key Takeaways

• You receive $162,500 today tax-free

• You retain the right to live in your home for life

• Based on projections, your beneficiaries would receive approximately $519,732 when the property is sold

Understanding Home Reversion Plans

How Home Reversion Works

A home reversion plan allows you to sell part or all of your home to a provider in exchange for a lump sum or regular payments, while retaining the right to live there rent-free for life.

Key Features

  • Lump Sum Payment: You receive a tax-free payment upfront, typically at a discounted rate (20-50% below market value).
  • No Monthly Repayments: Unlike equity release mortgages, there are no interest charges or repayments.
  • Right to Stay: You can remain in your home for life or until you move into long-term care.
  • Property Value Share: When the property is sold, the provider receives their percentage share of the sale price.

Who It's For

Home reversion plans are typically suitable for:

  • Homeowners aged 55+ who need access to cash
  • Those who want to supplement retirement income
  • People who want to help family members financially
  • Individuals who want to pay off existing debts

Pros and Cons

Advantages

  • No monthly repayments
  • Fixed percentage share (no compounding interest)
  • Can release larger sums than lifetime mortgages
  • Tax-free lump sum

Considerations

  • Significant discount on property value
  • Reduces inheritance for beneficiaries
  • May affect eligibility for means-tested benefits
  • Early repayment charges may apply

Note: Always seek independent financial advice before entering a home reversion plan.

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