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Home reversion plans

Home reversion plans operate in an entirely different way to lifetime mortgages. You sell all or part of your property to the reversion company in exchange for a cash lump sum.

The ownership of the property reverts to the reversion company. You won’t get the full market value for your house because, as part of the exchange the reversion company grants you a lifetime lease for your property. This gives you the right to remain in your own home rent-free for as long as you wish.

For example, if you sold half of your property to the reversion company, when you pass away or move into long-term care, the proceeds of the sale of your home would be split 50:50 between them and your estate.

How does it work?

You may be able to raise more money than with a lifetime mortgage.

  • These plans are simple for the purposes of inheritance planning as you’ll know exactly what proportion of your property you’re able to leave as inheritance
  • Your share of the property will benefit from house price increases
  • There is no worry over interest rates, as your share will never change unless you decide to sell more of your home
  • The money can be used for any purpose and can cover specific expenses such as home improvements or to pay university fees


Things to consider

  • Although you don’t pay rent, you no longer own 100% of your home
  • Your estate will miss out on some share of any house price growth
  • The percentage of your home is sold for less than the market value
  • It can be difficult to reverse the deal once it has been made, as you are selling part of your home
  • A home reversion plan will reduce the value of your estate and may affect your entitlement to state benefits
  • If you pass away soon after taking out the plan, you have effectively sold your property cheaply. However some plans have provisions in place so that you are protected

Find out more from the experts

Our advisers explore all of your options with you. If they don’t think equity release is right for you, they’ll tell you! Book a free consultation with your local adviser and they will explain all of your choices.

If you are considering equity release we recommend that you read through is it right for you? carefully.

Key promise

Customer satisfaction is at the heart of everything we do; we pride ourselves on being independent, transparent, supportive and straightforward. We're passionate about helping you to make the most of your finances when you’re in or approaching retirement.

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