Homewise Home for Life Plan

doverrodge

This is being offered on properties around the country.
However it seems completely unregulated. Does anyone have one of these and do we know if there are drawbacks, such as if the company ceases to exist is there any protection?
This is a summary from their website -
You might be wondering how we can offer such a big discount. It’s quite simple, really. You pay a one-off discounted price for the right to live in the property rent, interest and mortgage-free for your lifetime.
You’re protected by a Lifetime Lease which confirms your right to live there for as long as you need. When you pass away or move into care, some or all of the property’s value will return to Homewise or our investment partners. How much depends on how you choose to set your Home for Life Plan up.
I would love to hear members views before we go any further with considering this.

dimbo61

This was on MSE in 2012

https://forums.moneysavingexpert.com/discussion/4323509

Please take RED BERRY comments with a pinch of salt ( Only 2 posts in 6 years ? )

https://forums.moneysavingexpert.com/discussion/5286989

http://www.propertyindustryeye.com/analysis-a-look-at-how-the-home-for-life-plan-works/

http://www.thisismoney.co.uk/money/mortgageshome/article-3471835/Why-small-print-retirement-home-cost-20k-Housing-firms-stinging-thousands-hidden-fees.html

https://www.asa.org.uk/rulings/homewise-ltd-a15-301640.html

doverrodge

It seems ok for purchasers with the caveat that they will not leave an inheritance to their children.
I assume buyers could transfer an existing mortgage and possibly get some money as well?

Sellers may find they get less than they wanted for the property.

TrickyDicky101

I wouldn't have thought porting a mortgage rate would be possible under the HLP (I don't know for certain, however) as a life interest is not particularly desirable security for a lender.

There was a property for sale under a HLP close to me recently - it had a fairly attractive price (before I knew it was under HLP) but came with the proviso that the purchaser had to be over 55 (I think it was 55). Led me to look into HLP from Homewise.

It is an equity release product in a similar vein to home reversion schemes. In my (very limited) opinion - something to be avoided if at all possible.

doverrodge

Can you explain Home Reversion Scheme and how they work/compare?