Home Reversion Plan
A home reversion plan lets you sell a share - or all - of your property to a reversion company in exchange for a tax-free lump sum or regular income, while retaining the right to live in your home for the rest of your life, rent-free.
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What happens next
- Fill in the form (2 minutes).
- We'll match you with the right specialist for your situation.
- A specialist independent broker will contact you to discuss your options.
Important: Equity release is a long-term commitment and will reduce the value of your estate. It may affect entitlement to means-tested benefits. Independent financial and legal advice is required. The specialist brokers we work with source plans from Equity Release Council approved lenders. Your home may be repossessed if you do not maintain required payments on a secured loan.
About Home Reversion Plan
Unlike a lifetime mortgage, no interest rolls up - but you are selling equity at a significant discount to its current market value.
The options available
Partial Home Reversion
Sell a percentage of your property - for example 50% - in exchange for a lump sum, while retaining 50% ownership. The retained share passes to your estate when the property is eventually sold.
Full Home Reversion
Sell 100% of your property for a larger lump sum. You retain the right to live there rent-free for life. On eventual sale, 100% of proceeds go to the reversion company.
Lump Sum or Income
Home reversion proceeds can be taken as a single tax-free lump sum or structured as regular monthly or annual income. The income option provides a guaranteed regular supplement to pension income.
How the Discount Works
The reversion company buys your property share at a discount to current market value - reflecting the fact that they cannot realise the asset until you leave. The older you are at entry, the smaller the discount - more of the current market value is offered.
Home Reversion vs Lifetime Mortgage
Home reversion does not accrue interest - the lender's return comes from eventual property sale proceeds. A lifetime mortgage leaves you owning 100% of the property but with a growing debt. For some clients, reversion is the more appropriate structure.
Portability
Home reversion plans from ERC-approved providers include the right to move to a new suitable property, taking the plan with you - subject to the new property meeting the provider's criteria.
How It Works
Suitability assessment
A specialist adviser will assess whether home reversion or a lifetime mortgage better suits your circumstances. Reversion is less common - for most clients, a lifetime mortgage is more appropriate. The specialists we introduce advise honestly.
Valuation
An independent RICS valuation of your property is conducted. The reversion company's offer is a percentage of this valuation.
Illustration and legal advice
You receive a full illustration of the offer and independent legal advice from a solicitor - required for all home reversion transactions.
Completion
The legal transfer of the property share completes. Funds are released. Your right to live in the property for life is legally registered.
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How does a home reversion plan work?
The process works as follows:
- You agree to sell a percentage of your home - for example, 50% - to the provider
- The provider pays you a lump sum or arranges regular income payments. The price paid is below the market value of the share sold, because the provider cannot access the money until the property is sold years later
- You sign a lifetime lease granting you the right to live in the property rent-free
- When you die or move into care, the property is sold. The provider receives their agreed percentage of the sale price, and any remainder goes to your beneficiaries
Home reversion vs lifetime mortgage
| Feature | Home Reversion | Lifetime Mortgage |
|---|---|---|
| Ownership | Partial/full sale to provider | You retain 100% ownership |
| Interest | None - no loan | Fixed rate, rolls up or serviced |
| Monthly payments | None required | None required (unless serviced) |
| Minimum age | Typically 65 | 55 |
| Property growth | Provider shares in upside | You retain all growth |
| Estate value | Retained share only | Full value less loan balance |
Who is a home reversion plan suited to?
Home reversion plans are less common than lifetime mortgages and tend to suit a narrower set of circumstances:
- Older applicants (typically 65 and above) where the lump sum offered is larger relative to the share sold
- Those who want certainty - no interest, no loan balance growing over time
- Those who wish to ringfence a specific percentage of the property for beneficiaries (e.g., sell 50%, guarantee 50% goes to the estate)
- Those where property price growth is not a priority - if prices rise significantly, the provider benefits proportionally
Potential benefits
- No loan, no interest charges
- Tax-free cash without monthly repayments
- Certainty - you know exactly what share the provider receives
- Can ring-fence a percentage for beneficiaries
- No negative equity risk (no debt)
Points to consider
- Lump sum is well below market value of the share sold
- Provider benefits from future property price growth on their share
- Less flexible than a lifetime mortgage
- Minimum age typically 65
- Fewer providers active in this market
Frequently asked questions
How much will I receive from a home reversion plan?
The amount depends on the percentage of the property sold, the current market value, and the discount applied by the provider. The discount typically ranges from 30-60% of current market value - the older you are at entry, the smaller the discount. A 75-year-old selling 50% of a £300,000 property might receive 40-55% of that 50% share, not 50% of the full value.
Is home reversion better than a lifetime mortgage?
For most clients, a lifetime mortgage is the more appropriate and more flexible solution. Home reversion is typically best suited to clients who: want to guarantee inheritance of a specific percentage, prefer no interest accruing on the loan, and are willing to accept the upfront discount in exchange for this. A specialist adviser can explain both options honestly.
What happens to my property when I die?
On death (or moving into care), the property is sold. The reversion company receives the proceeds attributable to the share they purchased. Your estate receives any remaining proceeds from the share you retained. If you sold 100%, your estate receives nothing from the property sale.
Who provides home reversion plans in the UK?
The home reversion market is smaller than the lifetime mortgage market. The number of active home reversion providers is limited. We introduce you to specialists who source home reversion plans from the available ERC-approved providers and present them alongside lifetime mortgage alternatives for genuine comparison.
Are home reversion plans regulated?
Yes - home reversion plans are regulated by the FCA and must be advised. Independent financial advice is required before any plan completes. ERC-approved home reversion providers carry the same consumer protections as ERC lifetime mortgage providers.
What is the minimum age for a home reversion plan?
The minimum age for a home reversion plan is usually 65, though some providers accept applications from age 60. The ERC requires providers and advisers to ensure the plan is suitable for the applicant's full circumstances.