Home reversion plans, explained
The other kind of equity release. You sell part or all of your home to a provider for well below its value, and live there rent-free for life. No interest, no debt, and you know exactly what the family will get. It is rarely the best deal, but it suits some people.
How it works
A home reversion provider buys a share of your home, anywhere from 25% to 100%, and pays you a lump sum or an income. In return you get a lifetime lease: you live there rent-free (or for a token rent) until you die or move into care. When the home is sold, the provider takes their percentage of the sale price and your estate gets the rest.
The catch is the price. Because the provider might wait twenty years for their money and cannot charge interest, they pay far less than the share is worth: typically 30% to 60% of market value, more if you are older. Sell half of a £300,000 home at 70 and you might receive £60,000 to £80,000 for a share worth £150,000.
Who it suits
- People who want certainty: if you sell 50%, your family gets 50% of whatever the home sells for, whatever happens to interest rates or how long you live.
- People who are older (the minimum age is usually 60 or 65, and the deal improves sharply with age).
- People who want the most money possible and do not mind what the family inherits.
- People uncomfortable with the idea of a growing debt, even one with a no-negative-equity guarantee.
Who it does not suit
Anyone in their fifties or sixties (the price is poor), anyone who might want to move or repay early (you cannot buy the share back except at full market value), and anyone who expects house prices to rise, because the provider gets their percentage of the rise too.
How it compares to a lifetime mortgage
| Home reversion | Lifetime mortgage | |
|---|---|---|
| You own the home? | Part or none of it | All of it |
| Interest? | None | Rolls up, fixed rate |
| What you get now | 30% to 60% of the share's value | 20% to 55% of the home's value, as a loan |
| What the family gets | Your remaining share, guaranteed | Value minus the debt; can be protected |
| Can you change your mind? | Very expensive | Early repayment charge, then no |
| Speed | 8 to 12 weeks | 4 to 8 weeks |
Because the numbers so rarely favour it, home reversion is now under 1% of the equity release market and only a handful of providers offer it. A good adviser will still mention it, and will be able to explain why it is or is not right for you.
A note on the numbers. Rates, loan-to-value limits, fees and timescales are typical figures at the time of writing (2026) and vary between lenders and with your age, health and property. This is information, not advice. Equity release must be arranged through an FCA-authorised adviser, who will give you a personalised illustration before you commit to anything.
Quick answers
Can I sell 100% of my home?
Yes, and you still get the rent-free lifetime lease. It gives the most cash but leaves nothing for your estate.
Is home reversion regulated?
Yes, by the FCA, and it must be sold with advice, like a lifetime mortgage. Equity Release Council standards apply too.
Ready to talk to someone who can actually do it?
We introduce you to a qualified, FCA-authorised equity release adviser who will look at every option, tell you how much you could release and how fast, and never charge you for the first conversation. No obligation.