Home Reversion Plan Estimator
Estimate how much cash you might receive today, and how much future home value you could give up. This tool is for planning only and does not replace regulated financial advice.
Important: real quotes depend on age, health, property type, provider terms, and whether you sell all or part of your home.
What is a home reversion plan?
A home reversion plan is a type of equity release. You sell part (or all) of your home to a provider in exchange for a lump sum or regular payments, while keeping the right to live in the property rent-free for life (or until you move into long-term care).
Unlike a lifetime mortgage, there is normally no rolling interest debt. Instead, the provider owns a percentage of your property from the day you sign. When the plan ends, the property is sold and sale proceeds are split based on ownership percentages.
How this calculator works
This calculator uses a simplified model so you can quickly compare outcomes:
- Market value of share sold today = Property value × Share sold.
- Estimated gross cash received = Value of sold share × Payout rate.
- Estimated net cash = Gross cash − Fees.
- Projected property value = Current value grown by your annual growth assumption.
- Future value of sold share = Projected value × Share sold.
The gap between your net cash now and the provider’s future share value helps you understand the long-term trade-off.
Why payout rates are below 100%
Providers usually pay less than the full market value of the share because they may wait many years before receiving their proceeds. That delay, risk, and pricing model are reflected in lower upfront payout rates.
How to interpret your result
- Net cash released now: Useful for debt repayment, home adaptation, or retirement income support.
- Remaining ownership: The share your estate may still hold when the plan ends.
- Future value of sold share: What your family may no longer inherit from that percentage of the property.
- Implied annual cost: A rough annualized comparison to help evaluate alternatives.
Who might consider home reversion?
Home reversion can be relevant for some older homeowners who want certainty and are comfortable reducing inheritance value. It may be worth exploring if you:
- Need cash but want to remain in your home.
- Prefer not to take on compounding mortgage interest.
- Value guaranteed lifetime occupancy rights.
- Have limited alternative borrowing options.
Pros and cons at a glance
Potential benefits
- No monthly mortgage repayments required.
- Clear ownership split from day one.
- Can support retirement planning and care funding.
Potential drawbacks
- You may receive substantially less than open-market value for the sold share.
- Your estate inherits less if home prices rise strongly.
- Early exit can be difficult and expensive.
- May affect means-tested benefits and tax planning.
Alternatives to compare before deciding
- Lifetime mortgage: Keep full ownership, but interest compounds.
- Downsizing: Release equity by moving to a cheaper home.
- Retirement interest-only mortgage: Pay monthly interest, preserve property ownership.
- Family support or staged gifting plans: Sometimes lower-cost if feasible.
Practical checklist before signing
- Get quotes from multiple FCA-regulated equity release providers.
- Ask for full illustration documents with all fees and assumptions.
- Stress-test outcomes with low and high property growth scenarios.
- Discuss inheritance impact with family members early.
- Take independent legal advice and regulated financial advice.
Final thoughts
A home reversion plan can be a useful tool in the right circumstances, but it is a major long-term decision. Use this calculator to frame the conversation, then confirm your options with professional advisers who can assess your age, health, property, and financial goals in detail.