As soon as the mortgage is done, the money is paid back after the borrower passed away. The interest rate is paid only on the period when the borrower used his property as a living facility.
In case the borrower puts up for sale all or a part of his possession, usually a house, and gives it to a reversion company or to another person. This implies giving up on the ownership of your belongings and leaving it to somebody else. It is no longer in your legal custody, so it has another owner. As a trade you can stay in your home as long as you want, and also acquire an additional income.
Shared appreciation mortgage
In case you are planning to increase the value of your property, this might be seen as a very profitable investment for a lender, so they offer you an amount of money, as an extra income, in order to behold a part of your property. From that moment you share your personal possession with a lender company. All this without being forced to give up on your right of living in the property until death occurs.
Home Income Plan
The personal income is issued by the borrower and usually provided by the insurance company.