Home Reversion Plans
Sell part of your property, live rent-free for life—zero debt, no interest
What are Home Reversion Plans?
Home reversion plans are a form of equity release where you sell part or all of your property to a reversion provider at less than its market value (typically 30-60% depending on your age and health) and continue living there rent-free for the rest of your life with guaranteed lifetime occupancy. Unlike lifetime mortgages which are loans with compounding interest, home reversion involves actually selling your property (or a share of it)—there is no debt, no interest charges, and nothing to repay. When you die or move into permanent care, the property is sold and proceeds are split according to ownership percentages.
The percentage of market value you receive depends primarily on your age—older applicants receive higher percentages. For example, someone aged 65 selling 100% of their property might receive 35-40% of its market value, while someone aged 75 might receive 45-50%, and someone 85+ might receive 55-60%. You can choose to sell anywhere from 40-100% of your property—selling only part (typically 50-60%) protects inheritance for your family as your retained ownership share remains yours and grows with house price increases. Both you and the provider benefit from property value appreciation on your respective ownership percentages.
Home reversion plans suit a smaller segment of the market (around 5% of equity release customers) compared to lifetime mortgages (95%). They're most appropriate for older customers (75-85+) who want maximum cash, have reduced life expectancy, value simplicity with zero debt worries, or have health conditions affecting eligibility for lifetime mortgages. However, most financial advisers recommend exploring lifetime mortgages first as they typically offer more flexible terms, portability, voluntary repayment options, and allow you to retain 100% ownership and all house price growth. Home reversion is less flexible—you cannot port it to a new property, and if you die soon after taking the plan, your estate receives poor value. Professional FCA-regulated advice is essential to determine which equity release type suits your specific circumstances.
Home Reversion Plans are arranged by introduction only.
Key Benefits of Home Reversion Plans
No loan, no interest, no compounding—you've sold your property share, there's nothing to repay
Live in your home rent-free for life with legal right to remain—can never be asked to leave
Keep your ownership percentage—if property rises 50%, your share grows too, protecting some inheritance
Often release more cash than lifetime mortgages, especially for older applicants aged 75+
Expert Tips & Insights
You sell part (typically 40-100%) or all of your property to a home reversion provider at below market value (typically 30-60% of full value), receive cash lump sum, and continue living there rent-free for life. Example: £300k property, sell 60% to provider. Receive £108k cash (60% of market value at 60% discount = £180k theoretical value × 60% = £108k). When property eventually sells for £400k, provider receives £240k (60%), your estate receives £160k (40%). You benefit from house price growth on your retained %.
Home reversion pays 30-60% of market value for the share you sell (the percentage depends on age, health, and property). Older = higher percentage. Age 65 selling 100% might receive 35-40% of value. Age 75 might receive 45-50%. Age 85+ might receive 55-60%. Example: £250k property, age 75, sell 100%. Receive £112k-£125k (45-50%). If you sell only 60% of property, receive 60% of £112k = £67k. Joint applications use younger person's age. Provider's future profit comes from house price growth and your eventual sale.
Minimum age usually 60-65 (stricter than lifetime mortgages' 55). Most providers require 65+. Some specialist products accept age 60+ for excellent health or large property values. Joint applications: both must meet minimum age (unlike lifetime mortgages using younger age). Home reversion suits older customers (75-85+) who want maximum cash and have shorter life expectancy. Younger customers (60-70) usually get better value from lifetime mortgages because they'll likely live longer, costing provider more in lost rental income.
By selling only part of your property (40-80% instead of 100%), you protect inheritance. Example: sell 60%, keep 40%. When property sells for £400k, your estate receives £160k (40%) regardless of how long you lived there. This 40% share grows with house prices—if property was £300k when you sold but is now £400k, your 40% grew from £120k to £160k. Unlike lifetime mortgages where debt grows, home reversion your share stays the same percentage. Discuss with family: sell minimum necessary to meet cash needs, protecting maximum for inheritance.
Home reversion: sell property share, receive 30-60% of value, zero debt/interest, benefit from house price growth on retained %, but lose ownership of sold %. Lifetime mortgage: borrow against property, receive larger % of value (20-55%), keep 100% ownership/growth, but debt compounds reducing inheritance. Home reversion suits: ages 75-85+, those wanting maximum cash with no debt, poor health/reduced life expectancy, desire for simplicity. Lifetime mortgage suits: ages 55-75, wanting ownership benefits, longer life expectancy, ability to make voluntary payments. Most advisers recommend lifetime mortgages unless specific reasons favour reversion.
Costs: property valuation (£300-500), legal fees (£800-2,000), financial advice (£1,500-3,500). Total: £2,600-6,000. Key risk: if you die soon after taking reversion, you/your estate receives poor value—you got 40% of value but lived only 2 years, whereas you might have lived 20+ years. No way to cancel or reverse once completed. If property values fall, your retained % loses value too. Can't port to new property—must sell current property share back to provider (at current market value) first. Not available for flats or leasehold (mostly). Much less flexible than lifetime mortgages.
Frequently Asked Questions
Important Home Reversion Warning:
A home reversion plan will reduce the value of your estate and may affect your entitlement to means-tested benefits. You will be selling all or part of your home at below market value. This is a lifetime commitment. We recommend you discuss this with your family and seek independent legal advice before proceeding.
Considering Home Reversion?
Our FCA-regulated equity release specialists will help you understand if home reversion suits your needs better than lifetime mortgages, calculate what you'd receive, and explain long-term implications.