Your inheritance wishes
Whether you hope to leave an inheritance to your estate, gift funds earlier, or both, your wishes are built into your Home for Life Plan.
A common misconception is that you cannot provide an inheritance with a Home for Life Plan – but that’s not true!
Every Home for Life Plan is tailored to the individual and you will have the option to safeguard anything from 0% to 50% of the future value of your chosen property, which can be used to secure a guaranteed inheritance for your estate.
This means that you can enjoy a comfortable retirement in a home you love and leave a guaranteed inheritance for your loved ones too.
Plus, through purchasing a Home for Life Plan, you may be able to free up money to gift as an early inheritance now, as well as secure a guaranteed inheritance for the future if you wish.
How inheritance works
The amount you choose to safeguard will impact the upfront cost of your Home for Life Plan. The more you safeguard for your estate, the higher the price you will pay to secure your next home.
If you decide to safeguard a percentage of the property’s value, this will be legally protected in a document called the “Declaration of Trust” which forms part of your Home for Life Plan.
This is a legally binding document that will be reviewed by your independent solicitor prior to finalising your Home for Life Plan.
Payment to your estate
The Home for Life Plan ends when the last surviving Lifetime Lease Owner passes away or permanently vacates the property.
When this time comes, the property will be valued and any safeguarded percentage of that value will be paid to your estate, less your share of selling costs.
There are multiple ways you can provide an inheritance with a Home for Life Plan, take a look at our example guide for further details.
Let's see an example
Christine is 75 years old and she wants to move to a more manageable property that has a smaller garden, somewhere closer to her family. After clearing her outstanding mortgage and setting money aside for future savings, she has a budget of £180,000 left over to fund her move.
Homewise will buy a property of Christine's choosing at the full market value, and Christine will purchase a Home for Life Plan at a lesser cost to live there mortgage-free and rent-free for her lifetime.
Christine can choose how she wants to use her budget when she sets up her Home for Life Plan. If she chooses to safeguard 0% of the property’s future value, she will benefit from the maximum saving against the property price upfront. If she chooses to safeguard, the property price she can look up to would be less, but a monetary value will be provided to her estate when the Lifetime Lease ends.
|Safeguard chosen 0%||Safeguard chosen 50%|
|Christine purchases her Home for Life Plan for £180,000||Christine purchases her Home for Life Plan for £180,000|
|Homewise purchases a property worth £300,000||Homewise purchases a property worth £225,000|
|Christine’s budget would be boosted by £120,000||Christine’s budget would be boosted by £45,000|
|Paid to the estate when the plan ends £0||Estimated sale price* (after 20 years) £490,000|
|Paid to the estate when the plan ends £245,000 (less share of standard selling costs)|
*Property resale value calculated at 4% annual house price growth compounded over 20 years, as an approximate guide. UK House Price Index shows fluctuations in the average annual rise in house prices, ranging from 0.7% in 2019 to 10.8% in 2021. Standard selling costs would be calculated and deducted according to the amount safeguarded, in this example 50% of the selling costs would be deducted.
Get a quick estimate
Seen a property you like? Calculate how much less you could pay, or enter your budget & discover what property price you could look up to, with a Homewise Home for Life Plan!
Plus, use the slider on the results page to adjust the estimate based on your inheritance wishes.
Benefits of using our quick calculator
- Takes less than 2 minutes
- Optional inheritance adjustment
- Instant no-obligation estimate
“Simple to use & a quick way to know what I could afford with Homewise”
Read our brochure
Get an in-depth understanding of how the Home for Life Plan works and our complimentary Move Simply service. Plus, read real-life customer stories too.