🏠 Home Reversion Plan Calculator
Estimate your equity release based on age, home value, and health.
ℹ️ Note: Calculations are based on discounting the future value of sold share considering life expectancy and health status. Not financial advice.
What is a Home Reversion Plan Calculator?
Home Reversion Plan Calculator is an online tool that estimates the value by selling a portion of your home’s equity to a provider. It factors in your age, current value of your property, and percentage of your property value which you want released (typically 20-60%). Through this process, you reverse mortgages, you transfer ownership of part of your home.
How to use the Home Reversion Plan Calculator?
- First, select your currency in which you want to calculate the value.
- Enter the current market value of your home.
- Now enter your age (the minimum age of the applicants should be 60).
- Enter the percentage of equity (house) that you want to sell.
- Select your health status.
- Enter your Expectancy (in year).
- Click on the Calculate button calculator shows the estimated cash amount and the provider’s future ownership stake.
Example:
| Home Value | Age | Equity Sold | Estimated Cashout |
| $500,000 | 65 | 40% | $91277.39 |
Pros and Cons of Home Reversion Plans for Equity Release
| Pros | Cons |
| Retain the right to live in your home. | Lower inheritance amount for heirs. |
| You still have the right to live in that home. | Fees (valuation, legal charges) up to $2,000. |
| The lump sum amount that you will get is tax-free. | Lower payments than a reverse mortgage. |
How to Maximize Your Home Reversion Payout
- Boost Property Value: Renovate your house interior and exterior if possible before valuation (it can increase +5-15% payout).
- Compare Providers: Do some market research and find out that different buyers ‘ rates may vary by 20% industry-wide.
- Negotiate Fees: As per research, 43% of users save $500+ via fee waivers.
FAQs for Home Reversion Plan Calculator
What is a home reversion plan?
A home reversion plan is a type of equity (like your personal home), which you can release all or part of your property and you will get a tax-free lump sum and/or regular income, while you also have retaining the right to live in your home rent-free for the rest of your life.
How does a home reversion plan differ from a lifetime mortgage?
In a lifetime mortgage, where you take out a loan on your property, in a home reversion plan, you sell a part or all of your property to the buyer. There’s no need to pay interest because it’s not a loan, but for the exchange of your property, you’ll receive less than the full market value for the portion you sell.
Why is the lump sum less than the market value of my share?
As we know, Home reversion providers apply a discount to the market value because they need to wait until you pass away or move into care to realize their investment is their. The applied discount on property depends mainly on your age and health – the younger you are, the greater the discount typically applied.
What happens to my property when I die or move into care?
When you pass away or move permanently into care, your property will be sold. The home reversion provider will get all shares of the proceeds based on the how much percentage of the property they own. And the remaining part of your property will go to the state government.
Can I still leave an inheritance with a home reversion plan?
Yes, of course, you just sell only a portion of your property to the provider; the remaining percentage of your property still belongs to you, and it is left as an inheritance.
For example, when you sell 40% of your house, the buyer would receive only 40% of the property value when it’s sold after you pass away or move.
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