BLOG: Age-related affordability doesn’t have to stop a sale

Estate agents see it every day – a customer finds the right property, wants to move, but the numbers simply do not quite work.

For customers aged 60 and over, that does not necessarily have to be the end of the conversation.

Homewise’s Home for Life Plan provides an alternative way to move. Instead of buying their next property outright, an eligible customer pays a one-off amount to secure a lifetime lease on their chosen home. This can enable them to consider a property that may otherwise have been outside their budget.

For estate agents, the value is straightforward: it can create a buyer where there may not otherwise have been one.

That could be an older customer who has found the home they want but cannot quite afford it; needs more choice within their available budget; is considering compromising on their move because of price; or appears likely to withdraw from a purchase because the figures no longer work.

The agent does not need to become an expert in Homewise or advise the customer on the product. The important part is recognising that another option exists and introducing them to the specialist Homewise team to explore whether it could be suitable.

That can have implications beyond one customer. If an affordability gap can be overcome, a previously stalled purchase may proceed, a vendor gains a buyer and a property chain can potentially continue.

What happens to the property?

This is where the other side of the business – life tenancy investments becomes relevant.

When a Home for Life Plan completes, the property is owned by an investor subject to the customer’s lifetime lease. The customer retains the right to live in their home under the agreed terms, rather than paying conventional rent.

Life Tenancy Investments, Homewise’ s sister company, provides investors with access to properties with these life tenants in situ.

For an estate agent, understanding both sides of the transaction can be useful. What begins as helping an older customer afford the move they want ultimately creates a property investment with a life tenancy attached.

But the agent’s role is much simpler: recognise the customer whose move is being restricted by affordability and know that there may be another route forward.

In a market where every instruction, buyer and chain matters, it is another option worth having in the estate agent’s toolkit.