What is the home for life plan?
The home for life plan is a form of lifetime lease offered by the homwise company.You pay a one-off fee to live in a property of your choice with no rent, repayments or interest for the rest of your lifetime. It would be your home and you'd be registered as the lifetime owner at Land Registry.
With a home for life plan, you get to choose a home which you want to buy at market value. With the home for life plan, you will essentially pay a discount which can be up to 40% of the properties value. You will then be able to live in the property rent free until you die or move into long term care.
The amount of discount you will get with the home for life plan is based on your age, income, gender, marital status, property and financial circumstance.
When you die or move into long term care the property is sold and the value of any shares that were ringfenced is given to your family or estate while homewise keeps its stake.
The pros of the home for life plan
With the home for life plan, you can ringfence up to 50% of the property to pass on as an inheritance to your family.
Thus means with the home for life plan you will live
With the home for life plan, you are guaranteed a lifetime lease which is free. This guarantee is registered by your solicitors at the land registry.
Another pro of the home for life plan is that it guarantees that you will be able to move homes if you want to.
Another advantage of home for life’s plan is that it may allow you to avoid a stamp duty tax liability.
With the home for life plan, you can buy property anywhere in the UK.
The home for life plan may offer some security for you.
Cons of the home for life plan
It may be difficult to obtain a mortgage for a life lease home. You should speak to a mortgage broker about this.
With the home for life plan, you will not own full title of the property.
You will have to be at least before you can use the home for life plan
The home for life plan will only lend on standard construction properties.
Homewise is not regulated by the FCA.They are also not required to be. This isn't a bad thing, it just means there isn't much regulatory oversight.