Home reversion plans require sale of part or all of your property. The sale is in exchange for a tax-free cash lump sum, or income, and a guaranteed lifetime lease with no liability to monthly repayments. You have the absolute right to stay in your home rent-free for as long as you choose. For this reason, you will not typically receive the full market value of the sale to the home reversion company. However, you will still benefit from any increase in your property’s value for your share of ownership. A significant benefit of home reversion plans, which is not shared by lifetime mortgages, is that you can guarantee an inheritance to your beneficiaries. For example, if you sell 40% of your property to a home reversion company, 60% of the property’s value will be inherited by your beneficiaries regardless of any external factors.

When the home reversion plan comes to an end, the provider claims its share of the proceeds from the sale of your property.