Home Reversion Plans

A home reversion plan is a form of equity release where you sell part or all of your home to a equity release provider in exchange for a tax-free cash lump sum. You also gain a guaranteed lifetime lease with no monthly repayments to meet.

As with all equity release plans we recommend, you can stay in your home rent free for as long as you choose and are able to guarantee an inheritance to your beneficiaries. Both you and the equity release provider share in any increase in your property's value, providing you have not exchanged 100% of its value.

There are two types of Home Reversion Plans. The first, which we call 'discounted home reversions' does not pay you the full market value for the share in your property you sell. They simply buy a share of your property for less than the market value and recoup the market value of that share when the property is ultimately sold.

With the second type of home reversion plan, which we call 'non-discounted home reversions' the provider does pay you the full market value for the share of your property sold to them. In exchange, their share in your property will increase each year by a percentage which is specified at the outset, up to an agreed maximum share.

Typically, the minimum age for a home reversion plan is 65 although they can be available to younger ages. Please ask us for details.

Advantages of a home reversion plan

• You are able to guarantee an inheritance because unless you transfer 100% of the property to the provider, you retain a fixed share in your property
• You benefit from any increase in value of the percentage of the property that you still own
• Home Reversion plans may be available to those aged 55+ and you can typically raise more money from your home at a younger age with a reversion plan than other forms of equity release would allow
• The older you are, the more money you will be able to release with a reversion plan

Disadvantages of a home reversion plan

• Typically, you do not receive the full market value of the share of the property you sell because the equity release provider will give you the absolute right to live in it rent free for the rest of your life, and they will not get their money back for a number of years. Some plans do offer you the full market value, please ask us for details.
• The equity release provider owns a share of your home and will also benefit from any increase in value.
• Home Reversion plans cannot usually be reversed as you are selling part of your home
• The majority of home reversion plan providers do not guarantee further advances

We are independent equity release advisers who offer impartial and specialist advice on a range of equity release schemes including Home Reversion plans. To find the best equity release solution for you, get specialist advice on equity release by speaking to our friendly and knowledgeable equity release adviser.

Why check out our equity release calculator and find out how much cash you could release from your home.