Like a Lifetime Mortgage, a Home Reversion Plan is another method of Equity Release.
A Home Reversion Plan allows you to access all or part of the value of your property whilst, at the same time, retaining the right to remain in your property, rent free, for the remainder of your life.
With a Home Reversion product the provider will purchase all or part of your house taking into account your age and your health and will provide you with a tax free cash lump sum (or regular payments) and a lease for your lifetime.
To clarify, you will no longer own that proportion of your home - the Home Reversion provider will. Whereas with a Lifetime mortgage, you still own the property.
The percentage of your home that remains yours until the end of the plan and will always remain the same regardless of any future changes in its value. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.
As with a Lifetime Mortgage, the Home Reversion Plan can give a homeowner some certainty with regard to their financial future. With a Home Reversion Plan the client knows precisely what he or she has left as a proportion of the property’s value at the end of the plan. This allows for some to be ring-fenced for later use or to bequeath to the beneficiaries of their estate.
There are advantages and disadvantages to both types of plan, so it’s important for you to find out as much as you can, to get qualified advice and, if possible, to talk it over with your family to ensure you choose the best plan to fit your particular needs.
Which type of Equity Release Plan you choose will depend on your personal circumstances. As members of the Equity Release Council and Independent Mortgage Advisors, Mortgage Required are ideally placed to help you find the best solution for your particular needs now and into the future.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Autumn Budget 2025 Predictions: Mortgage Market
16 days ago
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
19 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
6 Aug 2025
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
