Unlike with a lifetime mortgage, the most popular form of equity release, a home reversion plan involves you selling all or part of your home to a reversion company for lower than market rate. You need to be 65 or over to qualify, there’s no interest to pay on the money released and no monthly payments to make. When the plan comes to an end, the home reversion provider takes its percentage share of the sale proceeds.
For example, if you sold half of your property to the reversion company, when you, or the last remaining applicant passes away or moves into long-term care, the money from the sale of your home would be split 50:50 between them and your estate.
Even though you will no longer own your home, you have the right to remain in it rent-free for the rest of your life.