Over 60s Home for Life

Is the schem regulated by the Financial Ombudsman?

My personal opinion is that you would be safer with equity release from a mainstream building society or other lender.

There is an Age Uk Factsheet that may help www.ageuk.org.uk/information-advice/money-legal/income-tax/equity-release/

I have just checked out their website. It is a family business, not regulated by the FCA because they do not offer finance: loans, mortgages etc so do not come under FCA’s remit.

My understanding is that they provide housing and arrange a Lease for Life, which you pay for up front, to purchase the right to live in the property for the rest of your life, with no further charges, no rent, no interest. You buy below market price. ( the vendor receives full market price). You are not buying the actual bricks and mortar.

It is possible, at a higher initial cost, to enable a percentage of the purchase price to provide an inheritance when you die.

You must get independent legal advice about the scheme and they won’t let you go ahead without proof that you have had professional advice.

As far as I can tell it all looks legitimate. I have never come across anything like this before. I think it seems worth looking into, with the caveat that if something looks too good to be true, it probably is.

I suppose if someone has no heirs, they can get a property to live in at a good price. I haven’t looked into what it might cost to be able to leave an inheritance from the scheme, but there is an online quote facility.

Worth further investigation?

If you decide to follow this up, make sure you get independent legal advice, that is a solicitor that you have located and instructed quite independently to the company you are selling to. Be very suspicious of any company that suggests you share their solicitor orthat you go to a solicitor they recommend, n matter how convincing the reasons they give.

Look also into maintenance costs of the property.

Maintenance costs. That was something I couldn’t find in the time I spent browsing their website.

Depending on your age, as Monica says, do investigate lifetime mortgages (Equity Release) which will give you a lump sum, more to draw on if you come to need it, at no cost, the interest will build up and come out of your estate when you die. You are able to live in your own house, use the money released to pay people to maintain it, and have a holiday or two. You say you have no dependents, so leaving money for them is not a worry, but the decent ER companies will not let you borrow more than is reasonable to repay the debt.

Don’t want to pour cold water on this - it may all be excellent - but my (pessimistic?) mind immediately thinks: ‘what if Homewise6 goes bankrupt’ and the scheme becomes obsolete as a result?

I'm sure it is 'legal' but whether it is right for you is another thing. How are you fixed if you live long and prosper (as they say) and decide you'd like simply to move house?

Wow! All comments are brilliant. I did think this type of home deal too good to be true. I am trying to move back to an area I grew up in. (Don't ask how I ended up here - very long story!) I think I am too old for equity release mortgage. Plus, I have a very limited income. The cost of financial advisor is worrying. I am so glad that you are all on GN. Sound advice. Sincere thanks.

You are never to old for an equity release. In fact for equity release, the older you are the better. To put it bluntly the older you are the sooner you are likely to die and the sooner the lender gets their money, plus rolled up interest. In fact the older you are, the more they are likely to advance you on your home.

However equity release would be granted on the home you now live in, rather than financing you buying a house elsewhere. If you wanted to move, you would have to sell your existing house, buy a new home from the proceeds of your existing home and then seek equity release on that. The costs of buying and selling a house would also have to be factored in.

Further up this page, in my first post a gave aa link to an Age Uk factsheet, which you should find helpful.

To read it. Double click on the link in the post.

rosa24

Don’t want to pour cold water on this - it may all be excellent - but my (pessimistic?) mind immediately thinks: ‘what if Homewise6 goes bankrupt’ and the scheme becomes obsolete as a result?

The life time lease is registered with the Land Registry so security of tenure should be safe. Obviously check this out independently.

Actually, having gone onto their website, I think it could be worthy exploring.

It seems to work something like:
You sell your house.

They buy a house you want say £200,000.

You pay them for a lifetime lease. This is negotiated depending on circumstances, but say £100, 000.

When you die they get possession. The house is totally theirs.

They get a house to sell and make a good profit.

200,000 out

100,000 to buy the lease paid back immediately.

A 200,000 house owned for the future

You get a house to live in for your lifetime and a pot of capital to spend.

Now I had been thinking of buying a retirement flat, but didn’t want to leave my children with a hard to sell properly that they would have to pay maintenance costs on indefinitely.

So I can see that this might actually work, in that case. They bviosly think this is a possibility because they have teamed with Churchill Retirement to buy their flats for Lifetime lease.

There are a vast number of these types of property for sale on Right Move. This is what Chat GPT says about them:

Over 60s home-buying schemes, such as Lifetime Leases, offer secured, discounted housing (often 20-50% off market value) without rent or mortgage payments, enabling pensioners to free up capital. However, these schemes typically reduce or eliminate inheritance, involve complex leaseholds, and may limit future capital growth.
Pros of Over 60s House Buying Schemes
Significantly Reduced Price: Schemes allow purchase of a property for a one-off sum that is substantially less than the market value.
No Monthly Payments: Generally, there is no rent, mortgage interest, or service charges to pay, helping those on fixed incomes.
Security of Tenure: Provides the legal right to live in the home for life or until moving into long-term care.
Freed-up Capital: Enables retirees to sell a high-value home, buy a new one for less, and keep the difference for retirement.
Better Location/Property: The discounted price allows purchasing a better, more suitable, or9, better-located home than otherwise affordable.
Cons of Over 60s House Buying Schemes
No Inheritance: Because the property (or the lease) reverts to the provider upon death, there is usually no equity left to pass on to beneficiaries.
Reduced Asset Value: While you live there, you are not benefiting from full market appreciation; you are buying a right to reside, not full ownership.
Resale Restrictions & Fees: Some schemes have high exit fees or restrictions on how and when the property can be sold.
Complex Legal Structure: These are often leasehold arrangements, which can involve complex, restrictive terms and potential, though rare, management issues.
Maintenance Costs: While you don't pay rent, you are usually still responsible for maintaining the property to a high standard.

Just to clarify, you can use equity release to help you buy a property. You don’t need to buy the property and then look at equity release. You use money from the sale of your property as all or part of the deposit on any new property.

Cabbie21

Maintenance costs. That was something I couldn’t find in the time I spent browsing their website.

The lifetime tenant is responsible for property maintenance.

Brilliant support above. My thoughts is that none of us know how long we are going to live of course or when we may need to go into a care home. So I'm thinking if I popped my clogs a couple of years after moving in, then basically you are going all of your hard earned money to them as the property is their's. However if you lived a longer life and were able to remain in the new property then it might suit you, if you got some money up front and were able to live a more comfortable life then it could work for you. But of course none of us know our future needs. But as many above have said it is very important that you seek legal advice first. An independent solicitor would give, I think, half an hour basic independent advice for starters.

Checking again on the net... Homewise are now partnered with Churchill Living. I am just going to check if Homewise6 is one and the same with Homewise.

Isla71

Checking again on the net... Homewise are now partnered with Churchill Living. I am just going to check if Homewise6 is one and the same with Homewise.

I can't find a Homewise6. Do you have a phone number\website/email for them, is it the same as Homewise details?

Maybe make a list of questions and give Homewise a ring,

Update on personal experience with Leasehold for Life Plan It might be good for a couple in their early 60s, but not mid 70s single with limited income. Very slick sales team want to know your total worth. As the buyer, they also do the negotiating with the seller. You have to use their solicitors at a cost. The high street solicitors I approached for quotes would not get involved. The lessee pays all associated costs, too. MSE suggested that a rental property could be a better option for short term. At least you don't pay for repairs, etc, or maintain the property. Alternatively, house share with another single as joint owners. Which I am going to look for. Thank you all for your comments.

Thanks for reporting back Isla. I hope you find something to suit.

Yes, thank you. It was something I’d never heard of before you posted.

Just about renting in the short term.

I think you would find it hard to get anything. It costs so much now for landlords to set up a new tenant ( fees, checks, repairs to meet standards and certification) that they are looking for people who will stay put so they don’t have to pay that all out again in a short time.

I know people often advise just move into a rental, but I don’t think that is realistic any more.

Another thought on Lifetime Lease. You would probably have to relinquish being "owner" of property when filling out specific questionnaires and no longer be classed as a good risk.

This sounds like a shared ownership or equity release scheme. While it can work for some people, here are key things to check before committing:
Red flags to investigate:

What happens to property value appreciation? (Do they keep all the gains?)
Are there restrictions on selling or moving out early?
What are the actual costs/fees involved?
Is the company FCA-regulated?

Better alternatives to consider:

Standard equity release/lifetime mortgage from established providers
Retirement interest-only mortgages
Downsizing to free up cash

I'd strongly recommend getting independent financial advice (not from Homewise6) before signing anything. Citizens Advice or a qualified financial advisor can review the terms properly. These schemes can be legitimate, but some have unfavorable terms that aren't obvious upfront.