What is a home reversion plan?

A home reversion plan is a way of unlocking money from your property without having to move out. You sell all, or just a portion, of your home to a provider in exchange for a lump sum or regular income. The best part? You can still live there, rent-free, for the rest of your life.

It’s not a loan, so there’s no interest building up or monthly repayments to worry about. You simply agree that the home reversion company will get their share of the property’s value when it’s sold, typically when you pass away or move into long-term care.

To be eligible, you’ll usually need to be aged 60+, own a UK home worth at least £100,000, and either be mortgage-free able to repay any existing mortgage or other secured debt using the money you release.

Why choose a home reversion plan?

Home reversion, as with the other type of equity release called a lifetime mortgage, is a way to access cash without having to move home or make regular repayments. That’s why it could be a viable solution for you if you need money but lack the income to repay a loan, and want to stay in your own home.

You may also choose it if you aren’t concerned about leaving all of your home’s value to loved ones when you pass away. That said, by selling just a portion of your home to the home reversion company, you will retain some of its value in order to leave an inheritance. It’s a simple way to unlock much-needed funds while still preserving some future legacy.

Home reversion isn't without its downsides. The cash you get is typically well below full market value, reflecting the company’s risk of waiting years for a return. So if maximising the value of your home is a priority, other options may be better for you.

Here’s why a home revision works well:

  • Stay put for life: Keep living in your home, rent-free, for as long as you need.

  • No monthly repayments: No interest piling up, no repayments to juggle.

  • Rent-free living for life: Stay in your home for as long as you wish, just as before.

  • Flexible cash release: Take a lump sum, regular income, or a mix, whatever suits your plans.

  • Preserve inheritance: Sell only part of your home so your loved ones still benefit later.

  • Certainty from day one: You’ll know exactly what share of your home you’ve sold and what’s left.

Five star reviews from happy customers

Taking out equity release is a big decision, so it’s good news that our selected advisers enjoy great feedback and an ‘excellent’ Trustpilot rating from customers who have used the service.

Highly recommended

Explained everything from the first phone call we made to completion, giving us time to understand all the options. Everything went smoothly - would highly recommend.

Brilliant service

The service we have received so far has been brilliant. The documentation came through very quickly, but we have not been put under any pressure to make a decision.

Help was always on hand

Everything explained to me every step of the way and always time to ask questions which are always fully answered. I never felt pressured to make a decision but help was always on hand.

What options do I have with a home reversion plan?

You can shape your home reversion plan to suit your circumstances and needs. Here are some options to consider and discuss with an adviser:

Sell all or part of your home

You can choose to sell your whole home to the provider or just a percentage, such as 40% or 60%. Selling less means you keep more ownership, which can be passed on to your loved ones later. This gives you the best of both worlds: cash now and something to leave behind.

Pick your payout

Decide whether you’d like a single lump sum for a big expense, or a number of payments when you need them in the future.

Stay flexible

If you sell a smaller percentage of your home’s value initially, some plans allow you to sell more of your home to the reversion company further down the line if you wish.

Add your partner to the plan

If you own your home jointly then both of you will be named on the plan. This means you’ll both have the right to remain in your home until you have both either passed away or moved into long term care.

The option to move house

Depending on the company you choose, you may be able to transfer your agreement to a new property if you decide to move in future. This means you’re not tied to your current home forever, as long as the new one meets your provider’s requirements.

How much can I release with a home reversion plan?

The amount of tax-free cash you can release with a home reversion scheme depends on a few key factors, including your age, property value, health and lifestyle.

Here’s what lenders usually take into account:

Your home’s current value

Naturally, the higher your property’s market value, the more you could release. Homes in popular areas or with special features may bring in a higher payout.

How much of your home you sell

The bigger the share you sell, the more cash you can release. Selling a smaller portion means you’ll get less, but keep more ownership for the future.

Your age

Older homeowners typically get more for the same share because the provider expects to wait less time before selling the property to get their money back.

Things to consider

You’ll get less than the full market value for the share of your home you sell. As a guide, reversion companies typically pay up to 60% of the current market rate. That’s because the provider won’t get their money back until your home is eventually sold, so they factor in that wait, and the risk that the home may be worth less in the future.

You’re also giving up all or part of your ownership, which means the share you sell is no longer yours to benefit from in future. If your home’s value goes up, the provider’s share will rise too, so they will get more when it is sold.

And once you’ve signed up, it’s not easy to change your mind. That is because home reversion schemes are intended to be a lifetime commitment. Plus, while many plans let you move home, there will be rules on the type and value of property you can transfer to.

Other risks to consider include:

  • Early loss impact: If you pass away soon after taking out a plan, your loved ones could lose a big chunk of your home’s value.

  • Selling it all: If you sell 100% of your home, your family won’t inherit anything from it when you pass away.

  • Age rules: You need to be 60 or older to get a home reversion plan. If you’re under 60, a lifetime mortgage might be a better fit as they’re available from age 55.

  • Hard to undo: Buying back your home isn’t simple. You would need to pay the full market value, not the discounted price you originally sold it for.

  • Benefits check: Suddenly having a big lump sum in the bank could affect your entitlement to certain means-tested benefits.

How to get your equity release quotes

At Compare More we work with specialist partners who bring you quotes from the UK’s leading equity release providers. To show quotes that match your circumstances and needs, we need to know:

Your age

Your age

The older you are, the more cash you can typically access.

Your property’s value

Your property’s value

The higher your home’s value, the more you can release.

Your contact details

Your contact details

We also need some contact details so we can send you more detailed information about your quotes. 

Equity release guides

Answering your questions about home reversion schemes

What type of equity release is right for you?

Explore your equity release options to find one that’s best for you.

Page updated on 5th September 2025, Reviewed by Richard Groom