Homewise offers homeowners aged 60 and over the opportunity to purchase a property with up to a 40% discount off the market value. Homewise pays the full purchase price for the home and creates a lifetime lease for the customer. There is no mortgage agreement in place and the customer makes no monthly payment.
The firm faced criticism for using misleading guide prices in two of its listings. One of its adverts stated: “£234,000 Guide Price. “Key features. Over 60s only … price reduced for the over 60s under a Home for Life Plan (lifetime lease) subject to property criteria.”
The advert received complaints because the £234,000 headline price had already been discounted by Homewise at a level which would not be offered to all customers who wanted to buy the property using their lifetime lease plan.
The discount applied by Homewise is calculated on a sliding scale depending on a number of factors including age. A borrower aged 60 would have to pay more than the guide price stated in the advert. The firm was criticised by the ASA for not stating this was a mid-range price and confirming what the upper and lower amounts would be.
The firm has since added in a statement which reads: “The price shown is for guidance only, the actual price you pay will depend upon your age, circumstances and property criteria.”
