You will receive less than the market value of your home since the buyer cannot sell it until you die or move permanently into long term care. The minimum ages to be eligible for these plans are usually higher than for lifetime mortgages.
In most cases you won’t pay rent or, if you do, it will be for a nominal amount. You may be able to opt to pay a higher rent in return for a larger payout from the sale.
Once the plan is in place, the investment company will be the beneficiary of any rise in value of your home, or any proportion of it if they don’t buy the home outright.
With a lifetime mortgage you continue to own your home completely and are given a loan based on your age and the value of the property. You can pay the interest charged monthly or have the interest rolled up into the loan amount – this means there would be no monthly payments.