Disadvantages of a Reversion Scheme:

·          You (or your heirs) may miss out on any increase in the value of the portion you have sold. You are unlikely to be allowed to buy back your property, and even if you can, you may have to pay the top market price.

·          If you die within a short time of starting such a plan, the effect will be that you will have sold your home, or part of it, at a much reduced value. Some schemes offer your surviving heirs a rebate if this happens within a certain initial timescale

·          You only benefit from any rise in your property’s value on the proportion you still own.

There is no “standard” reversion scheme and policies differ from provider to provider. Also, as competition increases in the Equity Release market, new ideas and twists to the different schemes are being offered all the time. It’s therefore imperative that people interested in Equity Release do as much homework as possible and check out many different providers along with their costs and small print.