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What is a Home Reversion Plan?

What’s appealing about a home reversion plan is that you can unlock tax-free cash from your home without any monthly repayments or roll up of interest.

Basically, you sell your home, or a percentage of it, to a provider in exchange for a discounted lump sum. You can stay in the property for life or until you want to sell it, at which point the provider will reclaim the percentage they own of the sale price (100%, 75% etc).

The home reversion company effectively grants you the right to remain in the property for the rest of your life ‘rent-free’.

So how does a Home Reversion plan work?

If you sold half of your property to the reversion company, when the plan comes to an end (usually when you pass away or move into long-term care) then the money raised from the resulting sale of your home would be split equally between the reversion company and your estate.


  • Benefit from increased house price on the percentage of the property you own
  • There no interest to pay on Home Reversion plans
  • Your percentage amount won’t change (unless you choose to sell more)


  • With a Home Reversion plan you no longer own your own home
  • You only benefit from increased house value on the percentage you still own
  • You receive less than the market value of your home
  • Less flexible than a lifetime mortgage as it can be difficult to end the plan and buy back the percentage you sold

To find out more, and to see if a home reversion plan is suitable for you, get in touch with our experts today on free phone 0203 817 6050

At Bower, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.

Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding.

Bower Home Finance provides independent, impartial whole of market advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,495 be payable.

If you are considering equity release, we strongly recommend that you read our equity release page carefully and talk to one of our specialists before deciding if you wish to proceed.

To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668request a call backemail us, or join our live chat you’ll find on our website.

Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.