I have heard that if I take out a home reversion plan on my current property this would stop me from moving, is this correct?
No not necessarily. However, if you are thinking of moving in the near future it might be better for you to wait until you have moved before considering a home reversion plan or other form of equity release, because you may find that any money realised by moving could avoid you needing to do a home reversion plan, thus helping you retain more equity in your home for future use of to leave as an inheritance.
Should you not be considering a move in the near future and still want to proceed with a home reversion plan, Safe Home Income Plan (SHIP) approved home reversion plan providers should allow you move, subject to them agreeing that any new property is suitable and acceptable.
Who would pay for any costs incurred would depend on the scheme rules and whether you having previously opted for a full or partial home reversion plan and whether you are moving to a dearer or cheaper property.
Generally on full reversions, as the amount of money given to you was based on the full market value of your current property, you would be expected to pay all moving costs yourself, including a valuation fee on any new property and the reversion company would expect all profits from downsizing.
Under partial home reversion plans you may still be expected to pay all of them yourself, or they may make a contribution towards some of them in the same percentage as they hold ownership in your property, but would also want their share of any profits made on downsizing or would recalculate their share of interest in the new property. You should check this point out before entering into any home reversion plan.
To find out more about how home reversion plans work, visit home reversion plans.