Life Tenancies

Life Tenancies are medium to long-term property investments which have multiple factors that drive capital growth, whilst remaining tradable.

Life Tenancies Explained

A Life Tenancy is a UK residential property that is subject to a Lifetime Lease which has been acquired by one or more persons aged over 60. This provides the tenant(s) (referred to as Life Tenants) with the right to live in their chosen property for their lifetime(s), or until such time as they move into permanent long-term care or voluntarily end the arrangement.

Life Tenancies are priced at significantly less than the property market value, with discounts typically upwards of 40%. The younger the Life Tenants, the larger the discount that is available to investors against the vacant possession value (VPV).

On purchase, investors become the registered owner of the property at Land Registry. When the last remaining Life Tenant passes away or moves into permanent long-term care, the Lifetime Lease will end, and the investor will be free to rent or sell the property on the open market.

During their occupancy, the Life Tenants are legally responsible for all maintenance costs, property improvements and property outgoings including utility bills, council tax, and any service charges or ground rent.

Key Features

High Potential

Life Tenancies are medium to long-term property investments with the potential for multiple factors to drive capital growth.

Low Purchase Price

Life Tenancies enable Investors to purchase residential property at significantly lower prices than their RICS vacant possession value.

Lower Risks

Life Tenancies offer exposure to the core UK residential market without any of the usual rental risks, finance risks, acquisition costs and taxes experienced in the buy-to-let property sector.

Discounted

Life Tenancies are purchased at a discount which is based on an actuarial calculation that takes into consideration the number, genders and ages of the Life Tenants that are contracted to a Lifetime Lease.

Lifetime Lease

Life Tenancies are secured by a Lifetime Lease which is structured as a full insuring and full repairing residential lease.

Capital Growth

Life Tenancies benefit from capital growth on the full vacant possession value of the property.

Lower Rate Stamp Duty

Life Tenancies are currently excluded from the higher rate SDLT scale.

Ownership

Life Tenancies are beneficially owned and registered in the name of the investor.

Flexible

Life Tenancies can be traded at any time at their current market value.

Tax Benefits

Life Tenancies are usually taxed as capital gains rather than income.

Reversion Income

Life Tenancies can be assembled into portfolios that deliver an income stream to investors through property reversions.