Free Online Calculators
A home reversion plan lets you sell between 20% and 100% of your property to a provider in exchange for a tax-free lump sum or regular income while keeping the right to live there for life, rent-free. You typically receive between 20% and 60% of the market value of the share you sell, depending on your age and health. Use the free home reversion calculator above to get an instant estimate.
Home reversion plans are regulated by the Financial Conduct Authority (FCA). This calculator provides illustrative figures only. Always speak with an independent, Equity Release Council-registered adviser before making any decision.
Estimate your equity release payout instantly
Minimum £50,000
Enter 0 if fully paid
Minimum age is 65
Between 20% and 100%
Enhanced rates apply if you have diabetes, heart disease, or limited mobility
A home reversion plan is a type of equity release product available to homeowners in later life. It is a type of equity release where homeowners sell a portion of their property to a reversion provider, receiving cash based on the percentage sold. The homeowner can continue living in the property without paying rent. Upon the sale of the home, the provider receives their agreed share of the proceeds.
Unlike a lifetime mortgage, you do not take on any debt. There are no monthly repayments, no interest charges, and no compounding loan balance. You simply exchange a percentage of your future property value for cash today.
Home reversion plans were first introduced in the UK in the 1960s as a way for older homeowners to access the equity in their homes. Although this market has gone through ups and downs over the decades, it has grown immensely in recent years thanks to improved regulation and provider standards.
The key figures that drive a home reversion calculation are your age, your property value, the percentage you choose to sell, and your health status. The calculator above uses all four inputs to produce an instant, personalised estimate.
The free home reversion plan calculator above gives you a realistic estimate in seconds. Here is what each input does and why it matters:
Enter the current market value of your home. Providers commission an independent survey to verify this figure, so use a realistic estimate not an aspirational one. The property must be a minimum of £50,000 and located in the UK to qualify.
If you still carry a mortgage balance, you must repay it from the proceeds of the home reversion plan. The calculator subtracts your outstanding mortgage to show you the true net equity you hold.
Age is the single biggest variable in any home reversion equity release calculator. If you are older or in poor health when you take out a home reversion scheme, you might get a better deal. That is because you will probably stay in your home for a shorter time, so your provider is taking less of a gamble on how house prices might change.
You can only take out a home reversion plan if you are aged 65 or older. Some providers set their minimum at 60 or 55, but the most common minimum is 65 for home reversion specifically. The older you are at application, the higher the percentage of market value the provider offers you.
Home reversion plans let people sell between 20% and 60% of their home in return for a cash lump sum, a regular income, or both. Some providers allow you to sell up to 100% of the property. The calculator lets you explore the full range from 20% to 100% by moving the slider and shows you instantly how your payout and retained equity change.
Providers assess your health because it affects how long they expect to wait before recovering their share. If you have qualifying medical conditions diabetes, heart disease, limited mobility you may receive an "enhanced" offer at a higher percentage of market value. The calculator applies an approximate enhanced adjustment to reflect this.
Many people ask how to calculate a home reversion payout manually. The core formula is straightforward:
The provider discount rate is the percentage below market value that the provider pays. This discount exists because the provider pays less than full market value since they may wait many years before selling the property.
| Input | Figure |
|---|---|
| Property value | £350,000 |
| Share sold | 40% |
| Market value of sold share | £140,000 |
| Provider discount (70 yrs, standard health) | ~52% |
| Estimated cash received | ~£67,200 |
| Share retained | 60% = £210,000 |
This illustrates why a home reversion value calculator is essential before you approach any provider. The raw headline of "sell 40%" sounds simple, but what you actually receive is considerably less than 40% of your property's value typically between 20% and 60% of the market value of that share.
The amount of equity you can release varies from 30.9% to 59.3% of the property's value; however, many factors influence this amount, such as your age and the size of the home share you sell.
Home reversion plans are not available to anyone under the age of 65. This is the standard minimum set by most providers and enforced under FCA regulatory requirements. Some brokers and calculators cite age 60 or even 55 for equity release broadly, but those lower ages typically apply to lifetime mortgages rather than home reversion plans specifically.
Younger applicants receive lower offers because the provider expects a longer wait before recovering their investment. A 65-year-old applicant typically receives a significantly lower proportion of market value than an 80-year-old, even for the same percentage of home sold.
This is one of the most common questions people bring to a home reversion equity release calculator session. Both products unlock cash tied up in your home, but they operate very differently.
A lifetime mortgage is a loan secured against your home. You keep full ownership, but the lender charges interest on the amount you borrow. The loan and accumulated interest are usually repaid when you die or move into long-term care.
A home reversion plan, by contrast, charges no interest at all. You give up a fixed percentage of your home's ownership permanently. Whereas a lifetime mortgage will charge a compounded interest rate and add this amount to the total owed each month, a home reversion scheme does not charge any interest whatsoever.
| Feature | Home Reversion Plan | Lifetime Mortgage |
|---|---|---|
| Ownership | Partially transferred | You keep full ownership |
| Interest charged | None | Yes compounds over time |
| Monthly repayments | None | None (or optional) |
| Minimum age | 65 | 55 |
| Payout as % of value | 20–60% of sold share | Higher upfront amount |
| Estate impact | Fixed % given up | Loan + interest repaid from sale |
| Reversibility | Very expensive to reverse | More flexible |
Lifetime mortgages are much more popular than home reversion plans, making up most of the equity release market. But a home reversion scheme might still be a better choice for you, particularly if you are older or in poor health.
In countries like the United States and Australia, a "reverse mortgage" functions similarly to a UK lifetime mortgage it is a loan against your home that grows with interest. The UK does not use the term "reverse mortgage" formally. A home reversion plan is distinct from a reverse mortgage because it involves no borrowing and no interest. You sell equity outright rather than borrowing against it.
The free home reversion plan calculator on this page shows you four key results:
These four figures give you everything you need to begin a meaningful conversation with an FCA-regulated equity release adviser.
A home reversion plan works best in specific situations. It suits you if:
Conversely, if you value retaining full legal ownership, prefer flexibility, or plan to move in the next few years, a lifetime mortgage or downsizing may serve you better.
Beyond the provider's discount, home reversion plans carry set-up costs that affect your true net payout. These typically include:
Usually £150 to £300.
Typically £500 to £1,500. You must instruct your own solicitor who will confirm you understand the agreement fully. It is important you are clear on the terms and set-up costs of your home reversion plan. To complete the equity release process, you will need to instruct a solicitor to act on your behalf.
This is mandatory for regulated equity release products. Some advisers charge a flat fee; others take a commission from the provider. Always ask upfront.
These vary by provider and may or may not be refundable if you choose not to proceed.
Enter these costs into your own calculations alongside the lump sum estimate to understand the full picture before you commit.