A home reversion plan is a type of equity release that is entirely different and less popular than the alternative (a lifetime mortgage). A home reversion plan allows you to sell all or part/exchange the ownership of your property for a lump sum of cash; in addition to giving you the right to stay in your property, ‘rent-free’, for as long as you live (subject to the lenders Terms & Conditions). This can also be known as a ’lifetime lease’ and is only available to those who are aged 65 or over.


  • The cash you release is tax-free and can be spent as you wish, such as making home improvements, buying a new car, supplementing your retirement income and much more
  • There are no monthly repayments to make as no interest is payable
  • You can benefit from any future increase in the value of your property from the proportion you retain
  • The older you are, the more money you will generally be able to release
  • You can typically raise a larger sum from your home with a reversion plan than would be available with a lifetime mortgage
  • Plans are portable which means it is possible to move home in the future
  • You can remove your home entirely from your estate in terms of inheritance tax
  • You know at the outset what share of your home you will be leaving to loved ones in your estate
  • You are able to guarantee an inheritance with the remaining part of the property
  • Plans can allow you to protect an inheritance for your family


  • If you sell 100% of your property, there will be no property value to leave to your beneficiaries
  • Although you don’t pay rent, you no longer own 100% of your home
  • Your estate will miss out on some share of any house price growth
  • There is no scope to return for further funds in the future when you sell all of your property
  • If you die shortly after taking out a home reversion scheme, your estate will receive less as the full market value is not given at the outset
  • It’s expensive to reverse - the property would have to be purchased from the reversion lender at the full market value
  • A home reversion plan will reduce the value of your estate and may affect your entitlement to state benefits
  • Not available to anyone under the age of 65
  • If you wish to buy back the proportion of your house you sold then this would have to be bought back at market value and not at the discounted rate you sold it for
  • If you pass away soon after taking out the plan, you have effectively sold your property cheaply. However, some plans do have provisions in place so that you’re protected

Find out how much equity you could release from your home

Try our Equity Calculator Now

Or call us free today on: 0800 802 1849 to find out more
Find out how much equity you could release from your home TODAY

By submitting this form you agree to a Just Compare equity release adviser contacting you to discuss how much equity you can release from your property. Submitting your details will allow us to contact you via telephone, email and SMS to talk about your comparison options. You can unsubscribe at any time.

Equity Release may involve a home reversion plan or a lifetime mortgage which is secured against your property. To understand the features and risks, ask for your personalised illustration.

We provide initial advice free of charge and with no obligation. Only if you choose to proceed and your case completes would a fee of 1% of the amount released be payable (minimum £1,195).

Call us free today on: 0800 802 1849 to find out more!

Find out how much equity you could release from your home TODAY