How Does Lifetime Home Work?

Exchanging an interest in your home for retirement income.


Equity Sold: As the homeowner, you sell Lifetime Home Limited normally 35% interest in your home, which accrues over a ten-year period (3.5% per annum).


Income Paid: Lifetime Home Limited buys the equity in your home, at normally 25% of the Initial Value (an agreed value with reference to an independent valuation), which is paid over a 10-year period (2.5% per annum less fees and charges). The purchase price is paid in regular income payments providing financial stability throughout your retirement.


Ownership: After ten years, you retain normally 65% ownership of your home, with the option to extend the Agreement if you desire.


Occupancy: After ten years, whether you choose to extend your equity release or not, you retain the right to remain in your home for as long as you wish, as long as it is safe to do so, and other terms of the Agreement are met.


Sale Proceeds: When you (or your estate) eventually sell the home, Lifetime will receive its interest of the sale price.


Shared Outcomes: When the home is sold, we share the outcome together. If the property value has increased, we normally would share the value 65% homeowner and 35% Lifetime Home Limited. If the property value has decreased, we share the value in the same proportions.


Understanding the numbers:

2.5%: You will receive 2.5% of the Initial Value of the home annually. This will be paid less fees, fortnightly for ten years (a total of 25% of the Initial Value of the home).

35%: At the end of ten years Lifetime will have a 35% interest your home.

10 Years: Income payments cease after ten years; however, you can remain in your home for as long as you wish, subject to the terms of the Agreement.

0.23%: The Annual Fee paid to Lifetime Home Limited based on the Initial Value of the home at the commencement of the agreement.

How is my retirement income worked out?

Firstly, we agree on an Initial Value (an agreed value with reference to an independent valuation).

The Initial Value of the Home determines the retirement income payments. These being 2.5% p.a, less fees, of the Initial Value of the home, paid fortnightly for ten years.

For this example, we have used an Initial Value of $1,000,000. Lifetime will be buying a 35% interest in the home, in exchange Lifetime will pay 25% less fees over 10 years.


Note the numbers represented are for demonstration only.


Homeowner Annual Income



Homeowner Total Income Received


Interest in Home


Homeowner Interest in Home


One $22,700 $22,700 3.5% 96.5%

If the property was sold after one year, Lifetime would receive 3.5% of the sale proceeds.

Two $22,700 $45,400 7% 93%
Three $22,700 $68,100 10.5% 89.5%
Four $22,700 $90,800 14% 86%

If the property was sold after four years, Lifetime would receive 14% of the sale proceeds.

Ten $22,700 $227,000 35% 65%
Eleven $0 $227,000 35% 65%
Fifteen $0 $227,000 35% 65%

Lifetime Home Eligibility

Find out if your home is eligible for Lifetime Home.


Have a question?

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Postal Address

PO Box 10760, Wellington, 6140

Physical Address

Level 3, 120 Featherston St, Wellington Central, Wellington 6011