Homewise Website Calculator
Estimate Your Home for Life Plan Cost
What is a Homewise Website Calculator?
A Homewise website calculator is a specialized tool designed to estimate the cost of a “Home for Life Plan”. This plan, offered by Homewise, allows individuals aged 60 and over to purchase a Lifetime Lease on a property for significantly less than its market value. Instead of buying the property outright, you pay a one-time sum to live there for the rest of your life without any rent or mortgage payments. This calculator helps you approximate that one-time payment based on your age and the value of the property you’re interested in.
This is not a mortgage calculator. The Homewise website calculator deals with a unique financial product aimed at retirees who want to secure a home for their future, potentially freeing up capital for other needs. The key principle is that the older you are, the larger the discount you receive on the property’s market price, and therefore the lower your one-time payment.
Homewise Website Calculator Formula and Explanation
While Homewise’s exact formula is proprietary and based on complex actuarial data, this calculator uses a representative model to provide a close estimate. The core concept is applying an age-based discount to the property’s market value.
The basic formula is:
Plan Cost = Property Value × (1 – Age-Based Discount Percentage)
The “Age-Based Discount” increases with age. Our model uses a factor that grows for every year above the minimum age of 60. For more information on how this can boost your budget, you might be interested in our guide to retirement property affordability.
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| Property Value | The full market price of the home. | Currency (£) | £100,000 – £1,000,000+ |
| Customer Age | Your current age in years. | Years | 60 – 95+ |
| Age-Based Discount | The percentage reduction from the market value. | Percentage (%) | ~8% – 59% |
| Plan Cost | The final, one-time payment for the Lifetime Lease. | Currency (£) | Varies based on inputs |
Practical Examples
Example 1: A 65-Year-Old Couple
John and Mary, both 65, want to move closer to their grandchildren. They find a perfect house with a market value of £400,000. Using the Homewise website calculator:
- Inputs: Age = 65, Property Value = £400,000
- Results: They might expect a Plan Cost of approximately £352,000, representing a saving of £48,000 from the market price. This allows them to secure their dream home and keep a significant portion of their savings. To see how this compares to other options, check out our lifetime lease calculator.
Example 2: A 78-Year-Old Individual
Susan, 78, is looking to downsize to a manageable, modern apartment valued at £250,000. Her age gives her a larger discount.
- Inputs: Age = 78, Property Value = £250,000
- Results: The Homewise website calculator estimates her Plan Cost could be around £182,500. This is a massive saving of £67,500, freeing up substantial funds from the sale of her previous home for travel and hobbies. Understanding the Homewise discount is key to planning.
How to Use This Homewise Website Calculator
Using our calculator is straightforward:
- Enter Your Age: Input your current age in the first field. You must be at least 60 years old.
- Enter Property Value: In the second field, type the market value of the home you wish to buy with the plan. Do not use commas.
- Calculate: Click the “Calculate” button to see your results.
- Review Results: The tool will display your estimated one-time payment, the total savings, and the effective share of the property your payment represents.
Key Factors That Affect Your Plan Cost
- Age: This is the most significant factor. The older you are, the lower your one-time payment will be.
- Property Value: A more expensive property will naturally lead to a higher plan cost, even though the discount percentage remains the same for a given age.
- Number of Applicants: The cost is adjusted if two people are on the Lifetime Lease, as calculations are based on the age of the youngest person and joint life expectancy.
- Safeguarded Inheritance: You can choose to pay more upfront to safeguard a percentage of the home’s future value for your estate. This calculator does not include that option, but you can learn more about it with a home reversion plan estimate.
- Property Location: While not a direct input in this simple calculator, property criteria and location in England or Wales are essential for the actual plan.
- Market Conditions: The underlying property market affects the initial value of the home you choose.
Frequently Asked Questions (FAQ)
- Is the Home for Life Plan a mortgage?
- No, it is not a mortgage, loan, or equity release plan. It is the purchase of a Lifetime Lease, which gives you the right to live in the home for life without rent or repayments.
- What is the minimum age?
- You must be 60 years of age or older to be eligible for the Home for Life Plan.
- What happens when I pass away or move into care?
- The plan ends, and the property is sold. If you have safeguarded a portion of the value, that percentage of the sale price is returned to your estate.
- Can I move to another property in the future?
- Yes, the plan is portable, meaning you can move your Lifetime Lease to another suitable property in the future, subject to terms. You can find more details in our section on over 60s property plan options.
- Is the discount from the Homewise website calculator guaranteed?
- No, this calculator provides an estimate for informational purposes. The final figure is determined by Homewise based on a formal application and their specific underwriting criteria.
- Can I safeguard an inheritance?
- Yes, Homewise allows you to pay more upfront to secure up to 50% of the property’s future value for your estate.
- Does this calculator account for two applicants?
- This simple calculator is based on a single applicant. For a joint application, the calculation would be based on the youngest person’s age, typically resulting in a slightly higher cost.
- What is a ‘Lifetime Lease’?
- It is a legal agreement registered at the Land Registry that gives you the right to live in a property for your lifetime. It provides full security.
Related Tools and Internal Resources
Explore more of our resources to help with your retirement planning:
- lifetime lease calculator: Compare different lifetime lease scenarios.
- home reversion plan estimate: See how safeguarding an inheritance affects costs.
- retirement property affordability: A guide to budgeting for your retirement home.
- Homewise discount: A deep dive into how the discount is structured.
- calculate home for life cost: Our primary resource page for the Home for Life Plan.
- over 60s property plan: Explore all property options available for retirees.