Home reversion: Could it really make you homeless?

Many people see home reversion as an easy way of releasing equity from their property. Essentially all these kind of schemes allow you to sell all or part of your home to a lender in return for extra income or a lump sum.

However, before jumping into a home reversion plan you may want to consider a sell and rent back option with a property buying company like MPG investments. While home reversion schemes may seem like a panacea, there is a downside:

You only receive a percentage of sale price

Typically you’ll receive between 30 - 50% of the sale price of your house – the remainder is the lender’s profit. In the vast majority of cases the sell and rent back option offers you a much greater percentage of the market value of your home.

No hidden costs

Many home reversion schemes have a set up fee that is around 1.5% to 2.5% of the loan amount. You may also have to pay a valuation fee.

With a quick sale and rent back option, we offer a free assessment of the value of your home within 24 hours and a guaranteed written offer within 48 hours of our first visit. Other companies could charge you up to £1000 just to make an offer on your home – at MPG our value assessment costs you absolutely nothing anywhere in the UK; it’s just one part of our “No Fee” Promise.

That means when you sell to MPG there are no extra charges or hidden costs. In fact we’ll even pay ALL YOUR LEGAL COSTS (if you use our recommended solicitor) or give you £500 toward your legal costs (if you use your own solicitor).

The percentage you receive depends on your age and sex

Home reversion schemes are normally targeted at the elderly – the older you are the more money you have access to. MPG Investments does not discriminate on age or sex – our sell and rent back offer is available to anyone and the value of our offer is dependent purely on the market value of your house.

Complexity

There are a number of home reversion schemes on the market but there are no real hard and fast rules as to how they operate. It can be a tricky business to assess the relative merits of each scheme, let along compare and contrast so many different, often confusing products. A proposition like MPG’s sell and rent back is necessarily simpler – you know where you stand from day one.

Penalties

Most policies carry penalties for early redemption which are payable if you sell your home or decide to pay of the loan during the first few years of your plan. Sell and rent back carries no such penalties – what you see if what you get. We buy your property from you and agree to rent it to you at a rate based on rental prices in your area.

To find out how MPG Investments can get you quick cash for your property without turning you out of your home, call us today on
020 8732 3555 for more information.