Homewise contract release

Lynb0910

My mother and our estate have been completely fleeced by Homewise. She unknowingly,due to cognitive issues at the age of 68, signed up to the 'Help to Buy' contract and signed away 70% of the value of the freehold, which then turned her into a lifetime tenant. Unfortunately, we will have to buy her out of the contract, which is extremely restrictive and onerous and only benefits Homewise and the freehold investors who are their clients. You are obliged to sign an occupancy certificate stating that the residence is occupied at least monthly and submit to property inspections and cannot sublet. If you want to move the house must be approved as an investment - worthy home for Homewise and the freehold investor. I would run screaming from them. My mother had the wherewithal to fund the extra £50k or so that she needed for the property she liked, but her lack of capacity meant she forgot to ask her fund for the funds. Homewise did not even enforce an Independent Financial Adviser signature before she signed, and the lawyer they gave her was THEIR lawyer. Disgusting. Stay away from them if you care about your estate. My mother paid £225k for a £275k property, and was left with a value of 30% of the property plus numerous fees to pay. Also, they aren't regulated by any ombudsman or by the FCA. I wonder why. Has anyone had any luck with taking them to court or getting released from the contract without a massive payout (excluding legal fees)

HampshireH

Has your mother been medically deemed not to have capacity to make such decisions? Or is this your assessment based on poor decision making.

If so how did this sale even proceed?

Lynb0910

Because they don't enforce a signature from an independent financial adviser or solicitor. She signed the contract without consulting anyone else. She is literally brain damaged. Medical scans prove it.

cattie

Having brain damage doesn't automatically mean a person doesn't have mental capacity as there are many different levels of brain damage & how it affects a person in their day to day life.

Read through here to see if you feel your mother should be covered under the Mental Capicity Act

https://www.nhs.uk/conditions/social-care-and-support-guide/making-decisions-for-someone-else/mental-capacity-act/

davidmcn

DanielleHW wrote: »

Best regards, Danielle
On behalf of Homewise

Please read the site rules - you can't claim to be posting on behalf of a company without MSE's permission.

Davesnave

davidmcn wrote: »

Please read the site rules - you can't claim to be posting on behalf of a company without MSE's permission.

Hopefully, that will be forthcoming, as this is an interesting topic, especially the conflict of assertions here regarding the use of an independent solicitor.

Very often, we only hear one side of a story.....

Former_MSE_Tine

Hi, the company has asked for a right of reply. MSE doesn't endorse anything a company says on the Forum:

Hi Lynb0910, I believe you have been speaking with the Homewise Customer Care Team in recent weeks, and I understand you were initially unaware of your mother’s decision to use the plan, when leaving rented accommodation to her current home some years ago.


Due to Data Protection and our company privacy policies, we cannot comment or disclose any personal information within this public forum, however, we do note there are inaccuracies and possibly misunderstandings in your feedback.



We do insist that all customers seek independent legal advice from their own chosen solicitors’ firm. We cannot, and will not, proceed without an independent solicitor who is acting on behalf of the customer, signing a certificate to confirm that they have fully advised their client on the plan and that their client fully understands the term and effect of the agreement they are choosing to enter.



The occupancy certificate is an annual occurrence, not monthly, and the occupant is required to live in the property as their main residence – they cannot sublet or use as a holiday home under the terms of the agreement. It is made very clear from the beginning of the process that a Lifetime Lease would not be suitable for someone looking for a holiday home for example.


The Home for Life agreement is a legally binding contract designed to protect the customer. Your mother continues to hold the legal right to occupy her property for her lifetime, and should she wish to move to another property and retain that right she is more than entitled to do so, and we will support that move as much as she can.



You raised concerns about regulation but pleased be assured the FCA, who we have liaised with transparently and closely, advised that we don’t fall under regulation as a Home for Life Plan is not a financial product (like a loan or other form of lending).


Please be assured we go to great lengths to ensure that our customer’s interests are protected, and will always encourage anyone considering the Home for Life Plan to involve family throughout the process. I know you’re currently in contact with our Customer Care Team Lynb0910, looking at the options for your mother’s current and/or future needs, and as always, our team are here to help with anything you need.


For any readers with questions or concerns please do contact us directly at any time, we’ll be happy to help. Best regards, Danielle (on behalf of Homewise).

parkrunner

Lynb0910 wrote: »

Because they don't enforce a signature from an independent financial adviser or solicitor. She signed the contract without consulting anyone else. She is literally brain damaged. Medical scans prove it.

If she doesn't have capacity why on earth aren't you or another family member in charge of her finances?

AdrianC

parkrunner wrote: »

If she doesn't have capacity why on earth aren't you or another family member in charge of her finances?

Even if the OP did have power of attorney over the mother's finances, that doesn't render the mother incapable of making her own decisions - it merely means that the attorney(s) can act on her behalf.

So the mother's signature could still be valid on this contract - but it would allow the OP to deal with Homewise as if they were her, to invoke any cancellation etc. From the Homewise response, I suspect that they do not have PoA in place. It may be a wise move to get this done ASAP, assuming she still has sufficient capacity.

If she really does not have sufficient capacity to make these decisions, then there have to be questions over whether she's capable of living independently. I notice the OP doesn't give any timescales... I cynically wonder whether they've suddenly discovered an ongoing situation and are having the heebie-jeebies at their inheritance being less than expected.