‘Find & Afford’ allows customers to release money through the sale of their current home that is tax-free, and, unlike traditional equity release schemes, does not accrue interest.
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This allows people to move into a home owned by Homewise or its investors at a discount of typically between 24 and 53 per cent of the property’s asking price. The discount will depend on the customer’s age and individual circumstances.
Homewise will provide the customer with a lifetime lease, which is purchased with a lump sum payment that guarantees the customer can live in the home until they die, or until the remaining partner dies.
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The product has been designed for those over the age of 65 and is portable.
Mark Neal, managing director of Homewise, said: “We estimate that retired homeowners are sitting on over £1 trillion of equity in their homes, but many feel that they do not have enough cash to fund the type of lifestyle they want in retirement. For some, using Find & Afford to find a better home to live in and at the same time release capital from the sale of their current home could transform their lives.”
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Kevin Morgan, managing director of Consilium Financial Planning, commented: “This is an innovative and alternative way of providing a solution to what is proving to be a growing problem. It has tapped into the current demand from the market. If it is fairly charged, it should do well and merits consideration, though I would proceed with caution until I was aware of the full details.”
