Legal & General unveil part-exchange service
Legal & General has launched a part-exchange Home Purchasing Service (HPS) which is available to Inspired Villages retirement communities.
Residents using the HPS would see their property valued by three independent estate agents, with Legal & General offering a guaranteed cash sale at 95% of fair market value.
According to the firm, sales using the HPS have reduced exchange times from an average of 6 months to 4 weeks.
If residents’ properties sell over expected value, Legal & General will share 80% of any upside, above the agreed threshold.
Legal & General will undertake a refurbishment programme, if required, to maximise value and speed up the sale.
It also commits to cover all related agent and surveying fees and contribute towards moving costs.
Inspired Villages currently operates six later living communities across the UK and is set to add to the portfolio with a further 2,500 homes over the next six years.
Its seventh village, Ledian Gardens in Kent is set to open in 2021.
Phil Bayliss, chief executive of later living at Legal & General Capital, said: “With 3.1 million over-60s seeking to downsize their homes, and priorities rapidly changing in light of the pandemic, we are keen to ensure that Inspired Villages is able to offer this opportunity to as many people as possible, as quickly as possible.
“The introduction of the Home Purchasing Service will enable more people to move into a manageable sized property, whilst releasing capital, saving on bills and enjoying the benefits of an Inspired village.
“This is about us helping our customers move quickly, with certainty and minimal fuss.”
Jamie Bunce, chief executive of Inspired Villages, added: “At Inspired Villages, we are all about creating great options for residents in order to suit their individual needs.
“We want more people to be able to access the lifestyle, security and health benefits on offer at our retirement communities, and the new Home Purchasing Service provides a new route, which can speed up the moving process.
“Property chains collapsing is a disappointment we all know too well. In later life, it can be critical, for those trapped in homes which are no longer fit for purpose.
“We hope our new Home Purchasing Service will offer potential residents’ certainty of sale, whilst – together with our moving package – removing the hassles and stress.
“Once fully established, we are hoping that 25% of sales will come through the part-exchange programme.”