Home Reversion Plans

Home reversion plans are one of the oldest forms of equity release in the UK, but they’ve gradually been phased out. The key reason is that most homeowners exploring equity release today will find that lifetime mortgages offer a far more flexible solution.

Here we’ll explain what home reversion is, whether you can still get one, how it compares to a lifetime mortgage, and what your options are if you already have it in place.

What is a home reversion plan?

The simplest way to explain a home reversion plan is that it’s a form of equity release in which you sell part or all of your home to a provider in exchange for a tax-free lump sum, while retaining the right to live in the property rent-free for life.

Unlike a lifetime mortgage, you no longer fully own your home. The provider becomes a part-owner (or full owner). When the property is eventually sold (usually after death or moving into long-term care), they receive their agreed share of the sale proceeds.

The amount you receive is typically well below market value, reflecting the provider’s long-term risk and the fact that they won’t get interest payments from you and may have to wait many years to realise their investment.

Can you still get one in the UK?

In most cases, no. Although it may still technically be possible with one or two lesser-known options, most major and niche equity release providers exited the home reversion market years ago due to low demand, complexity, and poor outcomes for borrowers compared with lifetime mortgages.

For most homeowners, exploring a modern lifetime mortgage is now the more realistic and beneficial route compared to home reversion plans if you want to get the most value and flexibility when releasing equity from your property.

Home reversion plan vs. lifetime mortgage

Below is an overview of the differences between a home reversion plan versus a lifetime mortgage for releasing equity.

While home reversion plans avoid interest altogether, the trade-off for this upfront benefit is often far worse when you run the numbers. Giving up ownership and selling your home at a steep discount usually results in less money in your pocket.

Lifetime mortgages have evolved dramatically, offering safeguards, flexibility, and better value, which is why they now dominate the equity release market.

How to choose the right equity release plan

Choosing the right equity release option requires careful advice, especially when comparing legacy products like home reversion plans with modern lifetime mortgages.

A specialist equity release advisor can:

• Assess whether equity release is your most suitable option

• Compare lifetime mortgage products from the whole market

• Explain how guarantees like no negative equity and inheritance protection work

• Show you how flexible repayment features can reduce long-term costs

• Explore alternative ways to release equity or access funds

In almost all cases, anyone considering a home reversion plan is better served by reviewing lifetime mortgage options first with an expert advisor.

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Home reversion plan pros and cons

Advantages

• No interest is charged for releasing equity

• Certainty over the percentage of the property sold

• Guaranteed right to live in the home

Disadvantages

• Involves selling your home at a significant discount

• Loss of full ownership

• Severely reduced inheritance

• Minimal flexibility once in place

• Only one or two providers

• Difficult to reverse or change later

• Rarely suitable or cost-effective compared to alternatives

Examples of what to do if you have a home reversion plan

If you already have a home reversion plan, you’re not necessarily stuck forever, but your options depend on the provider and the terms of your agreement. Possible pathways to explore with expert advice include:

• Reviewing your plan to understand the true long-term cost

• Buying back equity, if permitted

• Switching to a lifetime mortgage, if possible

• Downsizing, if appropriate and allowed

• Proper estate planning to manage inheritance expectations

A specialist advisor can review your existing arrangement and explain whether a modern lifetime mortgage could improve your situation or provide alternative strategies to consider.

Home reversion plan providers

Most well-known equity release providers, with the exception of Crown Equity Release, no longer offer home reversion plans, including:

• Aviva

• Legal & General

• Canada Life

• LV=

These lenders now focus almost exclusively on lifetime mortgages, reflecting how the market has shifted toward products that offer better consumer outcomes.

If you’re looking into UK home reversion plans today, it’s usually because you’re seeking equity release, and in nearly all cases, a lifetime mortgage will be the better option.

Why choose Money Helpdesk for your equity release?

We work with specialist equity release advisors who focus on modern solutions, particularly lifetime mortgages that offer flexibility, safeguards, and competitive terms.

Here’s why homeowners choose Money Helpdesk for finding the best equity release plan:

• Access to 5-star rated expert lifetime mortgage advisors

• Free initial chat with no obligation to proceed further

• Compare rates and deals from all available providers

• Exclusive equity release deals and rates from specialist UK providers

If you’re considering a home reversion plan, the best next step is to speak with an expert advisor who can show you why a lifetime mortgage may be a better fit, and you can get started here.