Whether you are considering transferring a share of your property, or taking out a large loan tied to the value of your house, it's a major life decision.

It is important to ensure that you are happy with the valuation placed on your home.

It will not be possible to enter into these contracts without the involvement of a solicitor, preferably someone you trust who is familiar with your background.

Don't forget to factor in legal fees. Residential Reversions Ltd estimates that solicitor's costs should not exceed £1,000.

As it is early days in the development of this market, it might be wise to wait a while and see if any other providers come forward with schemes next year.

If you are opting for a lump sum, it is worth paying for independent financial advice to ensure you are making the best use of the money.

Because these plans will have an impact on the inheritance value of your home, it is important to consult with members of your family to ensure that they are happy with the arrangement. A younger relative may be interested in entering into a private home reversion or loan arrangement with you.

Make sure you are clear on the repayment or closing terms of the contract, especially with regard to vacating the home for long-term care.

You may want to repay the loan or take back the share of your property early. There should be no penalty for this but ensure you understand how it can be done and at what future cost.