Elderly woman leads on neighbour at night (3)

I believe the answer is:

nan

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'elderly woman' is the definition.
'Nan' can be an answer for 'woman'. I am not sure about the 'elderly' bit.

'leads on neighbour at night' is the wordplay.
'leads on' says to take the initial letters (the letters which lead the words).
The first letters of 'neighbour at night' is 'NAN'.

Can you help me to learn more?

(Other definitions for nan that I've seen before include "Indian bread - older relative" , "Granny; bread" , "Ancestor" , "Gran" , "Indian bread; grandma" .)

I've seen this clue in The Telegraph.

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