Advisers building their later life lending advice capability could add up to £760,000 to their firm’s value with 25 cases per year, a new report by Air has revealed.
According to the later life lending platform, the set-up costs for referring cases to a specialist later life lending adviser are typically around £4,500 compared with £21,740 for an in-house service.
The new report from Air, written in partnership with Technical Connection and Ad Lucem, sets out the case for building later life lending capability to enable advisers to deliver better client outcomes and stronger commercial performance.
It estimates that referral will break even after around three to six cases while in-house services will take eight completions to break even.
The report calculates that while keeping later life lending advice in-house will deliver maximum long-term value as firms earn advice fees and full commission, referral can be the more pragmatic path.
According to the findings, starting with referral enables firms to gather MI and client stories safely, before deciding whether it makes sense to move the advice in-house.
Will Hale, CEO of Key Equity Release and Air, said: “Later life lending has moved from a niche consideration to a mainstream planning conversation, and the commercial case for building the capability has never been clearer.
“But the firms that will see those returns are the ones that start from the right place: genuine client need, transparent explanation of costs and trade-offs, and robust documented understanding before any decision is made.
“When that foundation is in place, advisers aren’t just unlocking a revenue line, they’re deepening relationships across generations in a way that compounds in firm value over time.”
Tony Wickenden, founder of Technical Connection, added: “The commercial opportunity here is real but it only works if the client outcomes are right first. The firms that will benefit most are those that build a repeatable, disciplined process – clear alternatives, plain-English cost explanation, documented understanding because that’s what protects the client, protects the adviser and makes the revenue sustainable.”
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