7 untrue myths about Homewise
It’s true what they say, you can’t believe everything you read on the internet. If you’ve ever searched for information about Homewise or our lifetime lease, it’s likely you’ve come across misleading information. You’ve probably heard about our Home for Life Plan, but if you’re unsure about Homewise and what we do then you’ve come to the right place.
There are some common misconceptions and myths about Homewise online, so take a moment to learn the truth about Homewise and our lifetime lease.
- Homewise own all the properties in the area
- Homewise is raising the market price of properties
- Homewise is owned by Cubitt & West
- Homewise’s lifetime lease is a scam
- Homewise take all of the property when you pass away
- Homewise’s lifetime lease is like equity release
- Homewise is unregulated
Myth 1 - Homewise own all the properties in the area
This is one of the most common myths we are asked about. The fact is, Homewise do not own any of the properties you see listed online. In the same way that other estate agents don’t own the properties they advertise, we are simply advertising the property for sale at a discounted price for people aged over sixty. This is an easy way for vendors to get an extra advert online for their property and to potentially a reach a new audience.
If you’re under sixty or not interested in buying with our discount, then you can still purchase the property at the full market value through the local estate agents, and you’ll find their details in the property listing information.
Are you searching for properties online through Rightmove and Zoopla? Did you know you can remove Homewise properties from your search results? Just filter out ‘retirement properties’ and our listings will be excluded from your results. You won’t miss any listings as the local agent selling the property will also advertise the property at the full market value, you’ll just see more relevant results for your search.
Myth 2 - Homewise is raising the market price of properties
As with any property sale, the selling price is determined by the independent estate agent and the vendor. This is known as the market price. Homewise has no influence over the market value of a property and is unable to determine what price the vendor may or may not sell their property for. We simply apply a discount to the market price the estate agent is advertising the property at.
The online listings you see are advertised with a discounted guide price for buyers over 60 years old looking to use our Home for Life Plan. This guide price is based on our average customer and your discount may be higher or lower than the advertised guide price.
Would you like to know what your discount could be? Speak to our Customer Service Consultants today on 0800 043 4488 and they’ll be able to calculate your bespoke quote over the phone!
Myth 3 - Homewise is owned by Cubitt & West
Homewise is a family-run business founded by Reg Neal in the 1970s and continues to be run by the Neal family to this day.
We work with several trusted partner estate agents in the UK to help our customers with their move, one of which is Arun Estates who own Cubitt & West in Sussex. Neither Cubitt & West nor Arun Estates owns Homewise and we’re not entirely sure where this myth came from!
It's worth noting that the Home for Life Plan is not a government scheme either. Homewise remains a family-run company based in Worthing, West Sussex and is not a part of any government funded housing scheme.
Want to know a little more about us? Take a moment to learn 6 quick facts about Homewise.
Myth 4 - Homewise’s lifetime lease is a scam
We’re a family-run business at heart, and our values, ethos and Code of Practice are drawn from how we would like to see our own families treated. As such, we go to great lengths to ensure that your interests are protected.
Let us reassure you that the Home for Life Plan is not a scam. It is a lifetime lease agreement which means the property bought is always your home and you are secure for your lifetime.
We will always encourage anyone considering the Home for Life Plan to involve family throughout the process, so everyone involved is fully informed and happy with the plan.
Also, we would insist that you seek independent legal advice and the Home for Life Plan contract requires your solicitor to sign a certificate confirming they have explained every part of the contract to you, and that you’re happy with the details, before the agreement can be finalised. We will not exchange contracts with you without this.
We’ve been working in the over 60s property market for more than 40 years now and we have helped thousands of people move home. Put simply, we help people find, move and live happily in a house they couldn’t previously afford with no rent, repayments or interest for their lifetime.
There are pros and cons to the plan and we understand it won’t be the right choice for everyone, but for those we do help it can make a big difference to their happiness. Don’t just take it from us, hear from our customers and read a few of the ways we could help you retire happy.
If you would like to talk to us further for reassurance about the Home for Life Plan, simply contact our friendly team on 0800 043 4488 and they’ll be happy to answer any questions you may have.
Myth 5 - Homewise take all of the property when you pass away
The Home for Life Plan is a lifetime lease which means you would 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. Ultimately, when the plan ends, the property would be sold and some or all of the property’s value would come back to us, but that depends on how the plan is set up in the beginning.
Everyone has the option to safeguard up to 50% of the property’s future value, which can be passed on as an inheritance. For example, if you safeguard 50% and the property sells for £300,000 when the plan ends, £150,000 will go back to your estate.
If you choose not to safeguard any percentage of the property’s future value, then 100% of the value will go to Homewise or our investment partners when the plan ends. Read our guide to protecting your inheritance with Homewise for more details.
Myth 6 - Homewise’s lifetime lease is like equity release
The Home for Life Plan is not the same as equity release, it’s an alternative option for people looking to move home. We can only apply the lifetime lease agreement on the purchase of a new property. It’s not a mortgage or loan and cannot be applied to your current property.
Equity release is type of mortgage where compound interest is applied and builds over time, and repayments are sometimes made. Here at Homewise, we help people buy their next home with a discount with no repayments, rent or interest for their lifetime. Our focus is helping people move home and have the security of a home they love for their retirement.
Myth 7 - Homewise is unregulated
This one isn't actually a myth, it's true. Homewise is not regulated by the Financial Conduct Authority (FCA) but it’s not because we’ve somehow dodged this! It’s because we provide property products and services, not financial products. As we don’t offer any form of financial service, like a loan or mortgage, we don't fall under the remit of the Financial Conduct Authority (FCA).
We're experts in the Home for Life Plan though, and our Code of Practice is set up to ensure honesty, clarity and professionalism at all times. We will always be open and honest when discussing the Home for Life Plan. Our customers are at the heart of everything we do, and we work hard to support them throughout their move, not just by offering a discount on their dream home.
Did you know we offer a free Move Simply service to all Home for Life Plan customers? Our dedicated team of property experts are on hand for every step of the moving process and could help make your move easier.
If you’re over 60 years old and looking to move home, call 0800 043 4488 to find out how we could help you find the perfect property for your retirement.