Home reversion is one of the two categories of equity release. The client sells all or part of the property to a reversion provider for less than the market value of that share, and receives a lifetime lease allowing them to remain in the property. Because nothing is borrowed, no interest accrues: the cost is fixed at the outset as the discount applied to the share sold. The discount reflects the client's age and the expected period of occupation, so younger clients receive a smaller proportion of value. The trade-off is ownership. The share sold is no longer the client's, and future growth on that share accrues to the provider. A client who wants certainty over the percentage of the property preserved for beneficiaries may prefer reversion; a client who wants to retain full ownership will not. Home reversion is regulated by the FCA, requires the same specialist adviser permissions and qualifications as a lifetime mortgage, and requires independent legal advice.
Client-friendly explanation
With a home reversion plan you sell a share of your home for a cash sum and keep the right to live there for life. You receive less than the market value of the share you sell, and that share no longer belongs to you or your estate. No interest is charged, because you have not borrowed anything.
Last verified 2026-09-13 · Effective from 2026-09-13 · editorial
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