A financing model targeting property buyers aged 60 and over is being positioned as a solution for transactions stalled by affordability constraints, according to Homewise, a company offering lifetime lease arrangements.
The Home for Life Plan allows eligible customers to pay a one-off amount to secure a lifetime lease on a property rather than purchasing it outright. According to Mark Neal, Director at Homewise, the scheme is designed to enable older buyers to access properties that would otherwise exceed their available funds.
How the arrangement works
Under the model, customers aged 60 and above pay an upfront sum for a lifetime lease on their chosen home. The property itself is owned by an investor, subject to the customer’s lease. The leaseholder retains the right to occupy the property under agreed terms without paying conventional rent.
Estate agents are being encouraged to identify older buyers facing affordability gaps and refer them to Homewise’s specialist team for assessment. The company states that agents do not need to advise on the product directly, but should recognise when a potential buyer may benefit from the arrangement.
Investment side of the model
Properties acquired through the Home for Life Plan are owned by investors through Life Tenancy Investments, Homewise’s sister company. These properties are marketed to investors with life tenants already in situ, creating a distinct asset class within the residential investment market.
The scheme is being promoted as a tool to prevent transaction failures in cases where older buyers cannot bridge the gap between available funds and property prices. Homewise suggests that enabling such purchases could also help maintain property chains that might otherwise collapse due to affordability pressures affecting one party.
Market context
The product enters a market where agents face increasing administrative burdens and transaction volumes remain sensitive to financing constraints. For estate agents, the scheme represents an additional option for completing sales that might otherwise fail at the affordability stage.
The model relies on investors willing to purchase properties with sitting life tenants, a niche within the broader buy-to-let sector. The arrangement differs from traditional equity release products, as customers do not own the property but hold a lifetime lease instead.
