How are home reversion plans different from equity release schemes?
Home reversion plans are a type of equity release scheme. The primary distinction is the mechanism of releasing equity. With a home reversion plan, you sell a portion or all of your home to a provider in return for a lump sum or regular income but continue to live in the property rent-free. With other equity release schemes, such as a lifetime mortgage, you borrow money against your home's value and retain full ownership. The loan, plus interest, is repaid when the property is sold, typically when you pass away or move into long-term care.