Reversion Mortgage Calculator — Cash for a Share of Your Home

A reversion mortgage calculator estimates the tax-free cash you could get from a home reversion plan — a type of equity release where you sell all or part of your home to a provider but keep the right to live there rent-free for life.

Unlike a lifetime mortgage, there's no loan and no interest. Instead, you sell a share of your property below its market value. The provider only gets their money back — their share of the sale proceeds — when you die or move into long-term care.

This reversion mortgage calculator works out the discounted cash offered for the share you sell, based on your age and property value, so you can weigh it up before taking advice.

With a home reversion, you're paid a discounted percentage of the market value of the share you sell — typically 20% to 60%. The figure rises with age because the provider expects a shorter wait before they can sell.

As a rough guide, at age 65 you might receive around 25% of the share's value, rising to about 60% at age 90. The younger you are, the worse the value, which is why reversion tends to suit older homeowners. Most providers require a minimum property value of around £50,000 and set a minimum age of 60 to 65. To compare an interest-based route, use our lifetime mortgage calculator and equity release calculator.

The figure this calculator shows is a starting estimate, not a quote. A real offer begins with an independent RICS (Royal Institution of Chartered Surveyors) valuation of your home, arranged by the provider — this typically takes 7 to 10 days from application. The surveyor looks at structural condition, local market trends, lease terms if any, and comparable recent sales. That valuation, not your own estimate, becomes the actual starting point for your offer.

On top of the discount built into the percentage offered, budget for legal fees, a valuation fee and provider setup costs, which most reputable providers disclose upfront as part of the illustration — ask for these in writing before you commit.

Enhanced home reversion terms

Much like enhanced lifetime mortgages, some home reversion providers offer improved terms — a higher percentage of market value — if you have certain health or lifestyle conditions that could reduce life expectancy. Because the provider's return depends on how long they wait to recover their share, a shorter expected wait can mean a better offer for you. Not every provider offers this, and it isn't guaranteed, but it's worth disclosing relevant health information when you get formal quotes. Tick "Enhanced terms" in the calculator above for a rough sense of the uplift.

Advantages

No interest and no repayments — you never owe a growing debt. A guaranteed inheritance share — you know exactly what percentage stays yours. Tax-free cash as a lump sum or income, and a lifetime right to remain rent-free.

Disadvantages

You receive far less than market value for the share you sell. You lose future house-price growth on that share. Plans are hard and expensive to reverse, and releasing cash can affect means-tested benefits and reduce your estate.

Home reversion typically suits homeowners aged 65 and over (some providers start at 60) who want certainty and to avoid the growing interest of a lifetime mortgage. You usually need to own your home outright or have only a small mortgage to clear, and the property typically needs to be worth at least £50,000.

It can appeal if you want a guaranteed inheritance percentage for your family, or if you're older and the discount is more favourable. It's less suitable if you're younger or expect strong house-price growth. See how much equity you hold first with the house equity calculator or how much equity can I release tool.

The share you sell no longer belongs to your estate and won't benefit from future house-price growth, so your heirs inherit less. The upside is certainty: you keep a fixed, known percentage.

Releasing cash can also affect means-tested benefits such as Pension Credit, Council Tax Reduction and Universal Credit if your savings rise above the thresholds. Your State Pension is unaffected. Regulated advice and a solicitor to review the lifetime lease are essential before proceeding.

Say you're 70, your home is worth £350,000, and you sell a 50% share.

That share has a market value of £175,000, but at 70 a provider might pay around a third of market value — so the reversion mortgage calculator estimates roughly £58,000 tax-free. You keep the other 50% of your home in your estate, live there rent-free for life, and pay no interest.

If you were 80 instead, the percentage rises, so the same 50% share could pay closer to £80,000. If you also qualified for enhanced terms due to a health condition, the offer could be higher again. Slide your own age and figures into the reversion mortgage calculator above to compare.

Official sources & further reading: read the guide at MoneyHelper, check standards and find an adviser via the Equity Release Council, and verify any firm on the FCA register. Browse every tool on the mortgage calculators homepage.