Reversion schemes
A reversion scheme involves selling a percentage of a property to a reversion company for a fixed amount. Homeowners will receive a certain percentage of the value of the property sold depending on their age. When the property is sold, the reversion company receives the same percentage of the sales proceeds, which was originally borrowed against the value of the home. These are the oldest form of equity release schemes, dating back to the 1960s.
This type of product is not regulated by the Financial Services Authority.