Homewise life time lease plan for over 60’s

AnotherJoe

cells wrote: »

In some ways these 'products' resemble pensions annuities and its worth looking at both

£200,000 sum of money will buy a 65 year old male an annual pension of about £12,000 a year for life. More if you have bad health or smoke or are older

That £12,000 a year could be used to rent for life and it does not tie you down to one property and you would get it until you die

True it wouldnt tie you to one property, but it leaves you at the mercy of landlords, rent rises, and where i live and in much of the SE that would be a joke for rent. The £12k (which seems wildly optimistic to me) wouldn't be much use to a couple, because on 2 lives, especially with one female and even slightly younger, it would much more than halve.


Personally I dont like pension annuities or the sound of these lifetime leases. But I can see/understand that if you have no one to leave anything behind for then an annuity could make sense as in theory it would give you more disposable income and a guarantee for lifetime payments.

Other way round surely? An annuity gives you money that you mostly spend on rent, so its not disposable. This type of lease OTOH leaves you with all your other income to do what you want with and you have no rent or mortgage to pay.

GaggingOrder

A related aside from the ethics of homewise... I wish Rightmove and co would introduce a way to filter them out. It's a right pucking fain when you are searching, see a property you like, then spot the Homewise bit!

yertiz_2

You can filter them out by clicking on 'non-retirement', seems to do the trick.

shuggyslh

Both P. Rooney and C. Coxon are Directors of Estate Agents and Homewise. Christopher Coxon has had 33 roles within different companies, from financial services to surveying. Paul Rooney has had 24 roles within different companies, similar and connected to C Coxon. Paul Rooney has recently been granted permission by the Financial Conduct Authority (FCA) to introduce business to Allcover Insurance Brokers as an appointed representative. C Coxon is a regulated individual also with the FCA and owns Home Service Financial Services. Arun estates is better known as mortgagemattersdirect which is owned by both. The FCA is very strict in vetting applicants and assessing their ongoing their honesty and integrity, each individual, must declare their other business interests, within their application, so as to determine that they are fit and proper. All information here is in the public domain. To summarise, these two individuals seem to have been involved in property, the best part of their lives, probably starting as estate agents, then property management and development, intertwined with mortgages. They could be construed as entepreneurs, in looking at different combinations, of making profit from property. Anyone dealing with estate agents and conveyancers, know that target dates for completion are never realistic. The Homewise scheme, whilst very profitable for the company, may suit certain individuals, who have no heirs to leave their legacy to. It may seem a 'con' but is still deemed a solution for the right individual. It is similar to Home Reversion, which both of these directors have been involved in before. Peer to peer (P2P) lending is a scheme, where small investors invest into a company, with a potential return, based on the risk associated with that company. I am confident that other companies within the property sector, will be launched via P2P that offer better value and benefits than the Homewise scheme. Coincidentally, both directors have initial permission from the FCA for P2P. One last thing to bear in mind, the elderly are classed as vunerable, in terms of regulated advice, this is normally consumers aged 75+, special measures from regulated individuals are recommended, to involve family members, third parties, so they are fully aware of all the facts before making a decision. Perhaps, this is why Homewise will never be regulated?

Democracy

Homewise have found a niche in the housing market that is unregulated. Well, good on them but here is the catch: What they have done is taken out a segment of the market that relies on all homeowners/renters to move up or down the chain, from 1 beds to 5 beds. What they are effectively doing is increasing the property values by limiting the number of properties that first time buyers rely on. The supply of 1/2 bed properties is now drying up for first time buyers, putting up the prices out of range for those younger people hoping to get on the property ladder.
That puts the greedy people who run this scheme at the same level as investment bankers, probably the most hated species on Earth. Avoid buying so that they go broke.

tim123456789

yertiz wrote: »

You can filter them out by clicking on 'non-retirement', seems to do the trick.

which is no use at all if what you are seeking is a proper retirement property (I.e one with a warden)

tim

jero

I am 50 years and still not able to buy my own house. This ridiculous system should be prohibited. Every interesting house I see is available for the over 60's and otherwise is way over-priced.
Renting for life is a better alternative than buying a house which is not yours and carrying the responsibility of the mortgage on your shoulders.
Renting gives me also more flexibility to move to different place if my job requires.

People over 60 usually already own their house and already payed years for their mortgage while this systems prevents first time buyers from finding an appropriate house.

VTL

You're all assuming prices only go up, they don't. Ever thought what Homerise will do with their share of the asset (the lion's, and therefore the deciding share) when prices tank? They'll dump it on the market and run for the hills and the 'tenant', for that's what you are, will be turfed out.

Rosieandjim

I never thought I would see these spread to the midlands but they seem to be buying up most first time buyers properties. Most would not be suitable for over 60s, one I have seen recently has 2 flights of stairs and is in a dubious area as are some others.

worid

I have just noticed that most of the flats advertised in my area are now Homewise over 60's only. This has happened in the last 2 months. It seems like they are buying up everything they can and pricing first time buyers out of the market. They need to be regulated as they do not show the correct price of the house, only a percentage which you can "buy". It seems to me you are renting and having to cover all your own maintence and then when you die or move into a care home they can re sell it for a good sized profit.

I would suggest that no-one buys these properties although it may look good on the surface you are just lining the pockets of unscrupulous property developers. Also they seem to think that top floor flats with no lift are suitable for over 60's. Most of the ones that I can see are entirley unsuitable for older people.