Understand the other form of equity release
Home reversion plans.
A home reversion plan is a form of equity release where you sell part or all of your home to a provider in return for a lump sum, regular payments or both, while retaining a right to remain in the property under the plan terms.
The clear answer
What is home reversion plans?
A home reversion plan is a form of equity release where you sell part or all of your home to a provider in return for a lump sum, regular payments or both, while retaining a right to remain in the property under the plan terms.
The provider normally pays less than the open-market value for the share it buys because you retain the right to occupy the home. Unlike a lifetime mortgage, there is no loan interest, but you give up some or all ownership and future property growth on the share sold.
From first conversation to completion
How the process works.
The exact journey varies by lender and product, but properly advised later-life lending should normally follow these stages.
Define the objective
Confirm why capital is needed and what alternatives exist.
Value the property
Obtain a valuation and understand the discounted reversion offer.
Choose the share
Decide whether to sell part or all of the home.
Review occupancy terms
Understand maintenance, insurance and moving rights.
Take legal advice
An independent solicitor explains the ownership transfer.
Complete the sale
The provider acquires the agreed share and pays the consideration.
The important decisions
Features and choices to compare.
Suitability depends on the complete product design, not one headline feature.
Part reversion
Sell a percentage and retain ownership of the remainder.
Full reversion
Sell the entire beneficial interest while retaining occupancy rights.
No rolled-up interest
There is no mortgage balance accruing interest on the sold share.
Shared future value
The provider receives its agreed share of sale proceeds later.
The starting checks
Eligibility and suitability considerations.
These are common checks rather than a guarantee of approval or a personal recommendation.
Age
Providers often use higher minimum ages than lifetime mortgages.
Property
The home must meet provider value, condition and location criteria.
Ownership
Applicants must be able to transfer the agreed legal or beneficial interest.
Valuation
The offer reflects age, property value and the right to remain.
Legal terms
Occupancy and maintenance obligations must be understood.
Advice
The loss of ownership and alternatives require careful advice.
Your reason shapes the advice
How this option may be used.
The same product can have different consequences depending on the purpose, amount, timing and duration.
Release a lump sum
Access capital without a mortgage balance or interest.
Avoid monthly payments
No mortgage repayments are due on the share sold.
Retain part ownership
A partial reversion can preserve a percentage of future value.
Support long-term plans
Use funds for defined retirement needs after full comparison.
The balanced view
Potential benefits and important trade-offs.
Both sides of the decision should be explained clearly before any application.
Why it may help
- No compound mortgage interest on the share sold.
- No compulsory monthly mortgage payments.
- A partial plan can preserve some ownership.
- Occupancy rights can allow you to remain in the home.
- The provider shares property-market risk on its ownership share.
What you must consider
- You receive less than full market value for the share sold.
- You give up ownership and future growth on that share.
- Moving or ending the arrangement can be complex.
- The plan reduces the estate available to beneficiaries.
- Home reversion availability is limited compared with lifetime mortgages.
Consumer protection
Safeguards and responsibilities.
Council-standard lifetime mortgage protections apply subject to the plan terms and lender criteria. Other later-life products can have different protections.
The Mortgage Hive approach
Clear advice, not pressure.
We start with the outcome you want, assess the wider picture and compare suitable later-life lending routes only after realistic alternatives have been considered.
Before deciding
What should be compared?
The most suitable comparison depends on the specific problem you are trying to solve.
Lifetime mortgage
Retain ownership while borrowing against the property.
RIO mortgage
Retain ownership and pay monthly interest, subject to affordability.
Downsizing
Sell at open-market value and buy a less expensive home.
Family or other resources
Avoid selling an interest in the home where realistic.
Experience and accountability
Why choose The Mortgage Hive?
Later-life mortgages are long-term, regulated commitments. The quality of the advice matters because the lowest headline rate is not enough if the product lacks suitable flexibility, conflicts with future plans or overlooks a better alternative.
The Mortgage Hive provides fee-free mortgage and equity release advice across the UK and welcomes family members into the conversation where the homeowner wants them involved.
Last reviewed: July 2026. General information only; personal suitability depends on your individual circumstances.
Common questions
Home Reversion Plans FAQs.
These answers are general. A recommendation can only be made after your circumstances and alternatives have been assessed.
Do I still own my home?
It depends on the share sold. With partial reversion you retain a share; with full reversion the provider owns the whole beneficial interest.
Why is the payment below market value?
Because you retain the right to live in the home, potentially for many years.
Do I pay interest?
No mortgage interest is charged on the share sold because it is a property sale, not a loan.
Can I stay in the property for life?
Normally yes, subject to the occupancy agreement and plan conditions.
Who pays for maintenance?
The homeowner usually remains responsible for maintenance and insurance under the agreement.
Can I move home?
Portability depends on provider terms and the suitability of the new property.
What happens when the property is sold?
The provider receives the value of its ownership share and the estate receives any retained share.
Can I buy back the share?
Terms vary and the cost may reflect current market value rather than the original payment.
Is home reversion common?
It is less common than lifetime mortgages and provider choice is more limited.
Is it better than a lifetime mortgage?
Not generally. It avoids interest but sacrifices ownership and future growth, so personal advice is essential.
Get a clearer answer
Find out whether this option suits your situation.
Start with a broad calculator result or speak to an adviser about your home, plans, family, benefits and alternatives. There is no advice fee and no obligation to proceed.
Important information: A lifetime mortgage is secured against your home. Equity release will reduce the value of your estate and may affect entitlement to means-tested benefits. It may involve early repayment charges and can affect future financial flexibility. Retirement interest-only and other payment-based mortgages require payments to be maintained and your home may be repossessed if you do not keep up repayments. Home reversion plans involve selling part or all of your home. The Mortgage Hive does not charge an advice fee; lender, valuation and legal costs may still apply. This page provides general information and is not a personal recommendation, mortgage offer or legal, tax or benefits advice.