Home Reversion

A home reversion plan is a type of equity release where you sell all or part of your home to a provider in return for a lump sum or regular payments, while retaining the right to live in the property for the rest of your life.

With a home reversion plan, the provider purchases a share of your property at a discounted value. You continue to live in the home rent-free, and the provider receives their share of the sale proceeds when the property is eventually sold.

Not entirely. You sell a percentage of your property to the provider, so ownership is shared or transferred in part. The amount sold depends on how much equity you choose to release.

A home reversion plan involves selling part or all of your home, whereas a lifetime mortgage is a loan secured against your property. With a home reversion plan, no interest is charged, but you give up a share of ownership.

Eligibility typically depends on age and property value. Home reversion plans are usually available to older homeowners, often from age 65 or above, although criteria varies by provider.

Yes. Home reversion plans are regulated by the Financial Conduct Authority. Providers must meet strict standards designed to protect consumers.

Yes. Because you sell a share of your home, the value of your estate is reduced accordingly. Any remaining share of the property will form part of your estate when the home is sold.

Some home reversion plans allow you to move to another suitable property, subject to the provider’s approval. Portability rules vary and should be checked carefully.

Home reversion plans are less common than lifetime mortgages. Many homeowners choose lifetime mortgages instead, but home reversion can still be suitable in specific circumstances.

Not always. Home reversion plans are permanent arrangements and may not suit everyone. Independent financial advice is essential before proceeding.