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It has taken over responsibility to administer a portfolio of about 1000 home reversion plans on behalf of a major international financial institution. A long-term contract is expected to follow.

This will increase Home & Capital's plans under management from about 2000 to 3000 and add a valuable recurring investment stream to its equity release activities.

The plans were originated by In Retirement Services which is now in administration.

As well as administering plans for third parties, Home & Capital advises pensioners on equity release and provides home reversion plans.

Graeme Marshall, chief executive of Home & Capital, said: "This is a significant step for our equity release business and will materially enhance our recurring revenue base, further establishing us as a leading administrator of equity release plans.

"It demonstrates that we can improve our performance even in the current difficult market conditions."

Martin Bamford, IFA for Surrey-based Informed Choice, said: "We are starting to see more mergers and acquisitions and consolidation in the sector, so it is not surprising to see deals like this.

"It is a challenge for firms to experience this level of growth and it can have implications for its customers. It puts the infrastructure and resources of the firm under pressure and its administrative systems can suffer."