Home reversion is a variation of the conventional equity release scheme. After a regulation property survey conducted by a third part lender, it allows you either to sell all of your property outright, or to release equity from a portion of it, and at the same time to retain occupancy of your home.

This kind of policy is becoming increasingly popular in the current financial climate. However, while some methods of releasing equity from your home might potentially close during your lifetime, home reversion schemes ordinarily prevent the bank from selling your property and reclaiming the debt while you and your spouse are alive and living in the home.

In this sense, the home reversion policy has some advantage over its competitors. Unlike some schemes, it cannot saddle you with an un-payable debt or expose you to the risk of losing your home.

However, you will have to consider the fact that home reversion policies will significantly reduce the amount of property that you can leave as an estate to your family. More often than not, all of your property will be claimed in the interest of repayment.

Home reversion policies have many benefits, especially if your retirement funds are wearing thin. This kind of scheme allows you to remain living in your home, and at the same time affords you access to regular income payments or to a lump sum to the value of your property. However, there are disadvantages to this kind of policy, and you would be well-advised to think carefully before signing up.