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.
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. All plans recommended are 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 we compare
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 We Help
Suitability assessment
We 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. We 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.
Speak to our later life lending specialists
Call 0204 6211776 · Whole-of-market advice across all later life products · FCA No. 814533
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. We compare both options honestly for every client.
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 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.