Legal & General announces the launch of its part-exchange ‘Home Purchasing Service’ (HPS), now being rolled out across its Inspired Villages retirement communities. As Inspired Villages looks to facilitate a stress-free home buying process for its customers, the new HPS, which began being trialled in Q4 2020, has already received notable interest and results
9 Feb 2021
Potential residents using the HPS will see their property valued by three independent estate agents, with Legal & General offering a guaranteed cash sale at 95% of fair market value*. Current sales using the HPS have reduced exchange times from an average of 6 months to just 4 weeks, with negotiable move in dates**.
The COVID-19 pandemic has put a spotlight on where people live and the communities around them, particularly the vulnerable and those in later life. As people now choose to make important lifestyle changes, the HPS has been launched by Legal & General and Inspired Villages to smooth some of the stress of moving and being part of a chain sale process. According to data from Quick Move Now, one in four sales fell through before completion in 2019. A survey from Which? also highlighted anxiety related to moving home, which was rated the second most stressful life event, after divorce, by respondents. This new policy aims to remove the burden of selling a home on the open market; by offering an attractive, stress-free and faster option for those wanting – or needing - to move into a well-run retirement community. For those in later years, trapped in homes which are no longer safe or fit-for-purpose, the accelerated process could be critical to their long-term wellbeing.
Due to age-appropriate design, wellness facilities and services which enable quality of life, studies have shown that living in a retirement community leads to a 46% decrease in the number of planned GP visits and retirement village residents experience a 31% decrease in planned hospital admissions. As pressure on the NHS reaches critical levels, with 7,000 fewer beds available in England, Legal & General’s HPS policy should also help alleviate pressure on the health service as it looks to speed up the moving process to its communities which offer residents access to on-site care, as and when required.
Inspired Villages, established by Legal & General in 2017, is building and operating retirement communities that enable their residents to live healthier, happier, safer, and more independent and active lives. The latest policy is part of its ambitious expansion programme for Inspired Villages, broadening its existing offering which already includes a generous move-in package and a rental option which was launch in 2020.
Seeing significant growth since its foundation, 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. Through facilitating socially distanced physical and social activities, Inspired Villages has worked to help its communities through the pandemic, putting shielding in place to protect its residents, whilst organising online and outdoor exercise classes and socials, such as balcony bingo and G&Ts, to support mental wellbeing.
Phil Bayliss, CEO of Later Living at Legal & General Capital: "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, CEO of Inspired Villages: "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."
* assuming the property meets certain criteria such as :
strong nearby comparables
over 95 years left of the lease
no refurbishment required
Valued below £1.5m
**If residents’ properties sell over expected value, Legal & General will share 80% of any upside, above the agreed threshold. Legal & General will also undertake a refurbishment programme, if required to maximise value and speed up the sale, and commits to cover all related agent’s and surveying fees and contribute towards moving costs.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
*as at HY 2023
Legal & General Capital (LGC) is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients in order to achieve improved risk-adjusted returns for our shareholders. LGC has built its capabilities in a range of alternative sectors, including in residential property; specialist commercial real estate; clean energy; alternative credit; and venture capital, which are all supported by long-term structural growth drivers, meet a financing gap and respond to a scarcity of supply that is underpinned by enduring societal needs.
Its purpose is to invest society’s capital for society’s benefit. Investing in the real economy and supporting the Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.
Legal & General has invested over £29bn in levelling-up regional economies, including through major UK-wide regeneration schemes and has recently made a commitment to enable all its new homes to operate at net zero carbon emissions from 2030.
*at 31 Jun 2021