Homewise life time lease plan for over 60’s

Red_Berry

I am 74 my wife is 76 and we have a £55k interest only mortgage with Halifax with 6 years to run. We want to move to a smaller bungalow, Because of our ages Halifax will not allow us to take the mortgage even though years ago they said it was portable. We could continue to stay here and keep the mortgage but no bank or building society are interested in helping us. So how do we fund the purchase? Homewise offered us £55k in exchange for 55% for the property.


The only ones to lose out will be our two children who have share 45% between them. However my wife and I will live mortgage free in a bungalow of our choice. True we have to maintain it but we would anyway however it was funded.


Please no emotion, wringing of hands - just plain facts - if what we propose is wrong explain why & what can we do instead?

kingstreet

How about seeking advice on lifetime mortgages from an IFA?

If your research is limited to one lender, which withdrew its Retirement Home Plan a few years ago, an IFA has to be able to come up with something you might be able to use?

Red_Berry

Hi Thanks for posting - tried 2 IFA's both say we are too old to get a mortgage.

kingstreet

Did you use the term "lifetime mortgage" or did you simply say you wanted a mortgage?

Lifetime mortgages are a separate advice sector and mortgage brokers have to have extended permissions to advise on them, hence my suggestion to seek independent financial advice.

Although what you are looking to do is not "equity release" the Equity Release Council is a good resource and place to find the kind of advice you need;-

http://www.equityreleasecouncil.com/home/

Newbevirgin

I have been looking at the Homewise scheme nobody has mentioned it yet (I don't think) but when both of you pass or go into care the property is then sold for the full market price and 50% of the price goes to your estate, so I believe. Better than nothing not that I will be bothered!!

michaelc999_2

dear sir,
Please could you explain to me exactly who or what this HOMEWISE SCHEME is all about and what are the pros and cons of it, ie who owns how much of the property on death of the over 60 person who buys the property, and what your true opinion of the scheme is. I have worked in the finance industry in Jersey and am very 'savy' to how financial things work, its just that this scheme\idea seems a little to good to be true, and in my considerable experience that's a dangerous thing. I would be very grateful for your input and knowledge of every thing you know about this scheme\product.
KINDEST REGARDS (Look forward to your rely)
michaelc999

postitbue

Just in case anyone has sold their flat to a buyer who is using the home wise scheme - DON'T DO IT. I cannot speak for their home equity release side of the business, but I will share my experience to give you an idea of how this 'business' works and in my opinion, what bunch of liars this lot are.

I was offered a great price for my flat in June - was put under quite a lot of pressure by the pushy negotiator who insisted that they could close the sale and complete in 6 weeks, as this was a cash purchase with no chain.

'Great' I thought - hassle free chain free fast sale, just what I wanted.

LIE 1.......

After wondering when the surveys etc would take place and after a but of badgering a month later as to why we hadn't heard anything, it turns out that the 'cash sale' is in fact being funded by the sale of buyers property. I don't know which planet that constitutes a cash sale!

Now, I think I should have walked away at this point as I've clearly been mislead, but at the same time, the high offer was still very appealing, and was higher than I was likely to get from another buyer, so decided to hang in there, albeit with a question mark on the morals of Homewise to blatantly lie in writing about the cash sale/ chain situation.

LIE 2
We get to august - past the 6 week completion date, and I find out no legals have been issued yet. Cue panic, moany phone calls etc. Finally come September all legals completed bar a few nitpicky bits which seemed to be raised purely for the purpose of holding things up. What part of this is in line with the 6 week completion date?

Lie 3
Finally lose my rag in October, as after being told for 3 weeks that we would be ready to exchange 'next week' we find out NOT from homewise, but from the agent down the chain - i.e. people buying homewise customers property that he is no longer continuing with the sale of his property, nor the purchase of mine. So looks like they had no intention of bothering to tell us that the sale had fallen through.

So in conclusion, what started in June and should have been done and dusted by late august latest has been dragged on and on, and eventually ended in a chain collapse for 5 people.

Don't risk selling your property to anyone using homewise, they will lie to your face to get your property and then cease communication as soon as an issue arises.

Doesn't say much for how they do business, and is not a surprise that they are not selling a registered product via their 'Equity release' wing.

Scam artists through and through, don't waste your time on these clowns.

kidmugsy

lessonlearned wrote: »

For relatives who wish to inherit then it's a bum deal.

Then let them fund the elderly relative to buy a superior property. Simples.

dazjaz

Well it all seems ok ish BUT for the seller it can be a pain .had someone trying to buy with Homewise ,only for them to offer a much lower offer than the agent had valued the property.Funny how the agent is in partnership with homewise ??????????? .is this a conflict of interest, Arun estaste own the agents so who owns homewise even if its not the same a agent for buying and selling in the same office cannot be good for one of the parties this might be ok for someone how has had their property on the market of some time BUT we have only been on for 3 weeks

easterbunni

Sorry to bring up an old thread, but, having been looking at houses for sale recently, why is it that 'over 60s only' (Homewise) properties include massive three storey / four bedroom family homes? I thought people approaching retirement wanted to downsize to little bungalows that they can potter around in. I know my dad did...