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Home Reversion Plans

Home reversion plan calculatorHome Reversion Plans allow you to sell all or part of your property now, for a tax-free cash lump sum. However, a legal agreement guarantees that you continue to live in the home rent-free (or for a nominal rent such as £12 a year) until you wish to move or until you die.

To understand the features and risks, please ask one of our Equity Release advisors for a personalised illustration.

What are the main benefits of Home Reversion Plans?



Home Reversion Plans have a number of benefits including:

  • You raise the highest lump sum compared with other Equity Release schemes
  • The lump sum is tax-free
  • You can spend the money as you wish
  • No monthly payments (except perhaps a nominal rent)
  • You can retain part of the property to give to your beneficiaries on your death
  • You still have the privacy of your own home
  • These plans are regulated by the Financial Services Authority

Can I just sell part of my property?

You can sell just part of your property to the Equity Release plan provider if you so wish. In the event that the property is subsequently sold, the proceeds will be payable to you and the plan provider in proportion to the share of the property you sold when you took out the plan.

You won’t raise as much money as if you sold the property with vacant possession because you are being guaranteed rent-free occupation for the rest of your life. Vacant possession simply means that neither you nor anyone else will be living in the property when it is sold.

What age do we have to be to qualify for a Home Reversion plan?

To qualify for a home reversion plan you will generally have to be at least 65 (or the youngest joint applicant at least 65).
The amount of cash you’ll receive will vary with age and whether you’re male or female. You can expect to raise from 35% to 66% of the property’s vacant possession value.

home reversion plan calculator
Robert’s Home Reversion Plan

Robert is aged 72 and owns a property valued at £200,000. He needs to raise the maximum amount of money available. The most he could raise on a lifetime mortgage is £76,000 which is insufficient for his needs. A full reversion from one plan provider would raise him £94,827. ERIC actually raised him £100,586.
Mary’s Home Reversion Plan

Mary is aged 70 and owns a property valued at £200,000. She needs to raise the maximum amount of money available. The most she could raise on a lifetime mortgage is £72,000 which is insufficient for her needs. A full reversion with one plan provider would raise her £82,270. ERIC actually raised her £87,510.

If you have any questions about Home Reversion Plans call freephone 0800 077 6885 to speak with one of our specialist equity release advisers. You can also try our online equity release calculator.

Home Reversion Plans