Later life lending capability could add up to £760,000 to a firm’s value from just 25 cases a year, according to new analysis from later life lending platform, Air.
The findings are published in the report The home belongs in the plan, co-authored with Tony Wickenden of Technical Connection and Phillip Wickenden of Ad Lucem. It sets out how advisers can build later life lending capability and respond to growing client demand for retirement borrowing solutions.
The report outlines two main routes for firms: referring clients to specialist advisers or developing an in-house later life lending capability. It suggests referral arrangements typically involve set-up costs of around £4,500, compared with £21,740 for building an in-house service.
Air says the difference in structure has a material impact on how quickly firms reach break-even. Referral models typically break even after around three to six cases, while in-house propositions require around eight completions before covering costs.
UK later life lending capability drives adviser growth strategies
The UK later life lending capability discussion is increasingly centred on how advice firms structure their offering to meet rising demand while balancing cost, compliance and capacity.
The report argues that firms do not necessarily need to build a full standalone division. Instead, it says a structured investment in qualifications, templates and governance can be enough to establish a functioning capability.
It also highlights a hybrid approach as a common route, where firms combine in-house lending advice with referral partnerships. This can allow advisers to manage more complex or time-intensive cases externally while retaining core revenue-generating activity internally.
Air calculates that retaining later life lending advice in-house delivers the strongest long-term value, as firms benefit from advice fees and full commission. However, it notes that referral models can offer a lower-risk entry point, allowing firms to gather data, client feedback and case studies before committing to full integration.
Will Hale, chief executive of Key Equity Release and Air (pictured), 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.
“At Air, our goal is to equip advisers with the insight and tools they need to establish productive referral relationships where appropriate and to deliver confident, client-centred advice in a fast-moving environment.”
Damon O’Connell, director at Key Partnerships, said many advisers begin with referral models to meet Consumer Duty expectations before considering expansion into in-house services.
He added that hybrid approaches are increasingly common, particularly where firms want to manage lower-value or resource-intensive cases externally while focusing internal capacity on core business lines.
Tony Wickenden, founder and managing director of Technical Connection, said the opportunity depends on disciplined processes and clear client communication.
He said: “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.”
