How much will I receive from a home reversion plan?

The lump sum depends on three factors: your property value, the percentage share you sell, and the discount applied by the provider (which reflects your age and life expectancy). Providers pay below market value because they must wait until your death or care move before they can realise their share. Older applicants typically receive a higher percentage of market value because of shorter expected tenancy.

What is the minimum age for a home reversion plan?

Most home reversion providers require applicants to be at least 65 years old, with many setting a minimum of 70. The minimum is higher than for lifetime mortgages (55) because the provider needs to be able to project a realistic timescale for receiving their share of the property.

What is the difference between home reversion and a lifetime mortgage?

With a lifetime mortgage you borrow against your home, the loan plus compound interest is repaid from the sale of the property. With a home reversion plan you sell a share of your home outright. There is no debt and no interest rolling up, but you give up a proportion of your home's future value. Which is better depends on your age, health, property value, and estate planning goals.

Can I sell 100% of my home through home reversion?

Yes, some providers allow you to sell up to 100% of your home, though selling a smaller share is more common. Selling 100% gives the maximum lump sum but leaves nothing for your estate. Selling 25–50% balances a useful lump sum with leaving equity for beneficiaries.

Is the money from home reversion tax-free?

Yes. The lump sum you receive from a home reversion plan is not taxable as income. However, it may affect means-tested benefits if it takes your savings above the benefit threshold. Any regular income payments from a home reversion plan may be treated differently, seek specialist benefits advice.

Updated 6 April 2026

Home Reversion Calculator · Free UK 2026

Estimate how much you could receive by selling a share of your home, with no debt, no monthly payments, and no interest rolling up.

✓ Free to use✓ No debt or interest✓ Instant estimate✓ No personal details

Home Reversion Calculator

Enter property value, share to sell, and provider discount. Lump sum appears instantly

Property value (£)

Share to sell (%)

Provider discount (%)

Estimated lump sum

£90,000.00

Selling 50% of your home at 40% below market value

Property value

£300,000.00

Share sold

50%

Market value of share sold

£150,000.00

Provider discount

40%

Lump sum received

£90,000.00

Your remaining equity

50% (≈£150,000.00)

Estimates only. Actual lump sums depend on your age, health, property type, and lender criteria. Always seek independent FCA-regulated advice.

How Home Reversion Plans Work

Quick Answer: In a home reversion plan you sell a share of your home to a provider at a discount to market value. You receive a tax-free lump sum and continue living in the property rent-free. There is no interest to pay, but the provider buys at 30–50% below market value, reflecting your right to live there.

What is Home Reversion?

Home reversion is one of two main equity release products (the other being a lifetime mortgage). You sell a percentage of your property to a provider at a discount. In return you receive a lump sum and the right to live in the property for the rest of your life, rent-free. On your death or move into care, the property is sold and the provider receives their agreed share of the sale proceeds, at full market value.

Formula

Lump sum = Property value × share sold (%) × (1 − discount %)

e.g. £300,000 × 50% × (1 − 40%) = £90,000

Worked Example, £300,000 home, sell 50%, 40% discount

Property value£300,000

Share sold50%

Share value at market£150,000

Provider discount40%

Lump sum received£90,000

Remaining equity share50%

At death, the provider receives 50% of the eventual sale price, which may be much higher than £150,000 if property prices rise.

Frequently Asked Questions

A home reversion plan is a type of equity release where you sell a percentage of your home to a provider in exchange for a tax-free lump sum (or regular payments), while retaining the right to live in the property rent-free until you die or move into long-term care. Unlike a lifetime mortgage, there is no interest to roll up, but the provider buys your share at a significant discount to market value, typically 20–50%.