Financial services investors City of London Group is set to buy Milton Homes for £20.2m.
Milton Home is currently owned by DV4, a fund owned in turn by property investment advisers Delancey.
Delancey will get £7m in cash and the remainder in shares in City of London Group.
Milton Homes has a current UK residential property portfolio of 586 properties with a market value of £77m.
City of London Group chairman Paul Milner says: “The Board believes that the acquisition of Milton Homes presents the Company and its shareholders with an attractive opportunity to acquire a business in the equity release sector.”
The deal depends on regulatory approval and a board vote.