For years, the realm of property investment has primarily revolved around traditional buy-to-let properties. However, a less explored yet equally promising and secure avenue has been quietly gaining momentum – Life Tenancy Investments. Life Tenancy investments have been around for over 40 years and have given investors consistently strong returns.
In this blog, we’ll delve into the world of Life Tenancy Investments, shedding light on what they are, why they’re worth considering, and how they work.
At its core, a Life Tenancy is a medium to long-term property investment with the potential for significant capital growth. It allows investors to buy residential properties at a substantial discount compared to their respective vacant possession valuation, often exceeding 50%. These properties are occupied by what we call a “Lifetime Tenant” – an individual aged sixty or older who has purchased the right to reside in the property rent-free, while covering maintenance costs, until they pass away or transition to permanent long-term care. At that point, the Life Tenancy concludes, and the property becomes the investors to manage/or sell as they see fit.
Here are some key points about Life Tenancy Investments:
- Low-risk property asset class.
- Discounts range from 30% to 70% of the property’s RICS vacant possession value.
- Investments are currently exempt from the 3% stamp duty surcharge on second homes.
- Investors become the registered owner of the property at the Land Registry.
There are great benefits for the Life Tenants, as this unique investment option provides older individuals (over-60s) the opportunity to secure a home that might otherwise be financially out of reach. They can also enjoy the peace and security of residing in their home for the rest of their lives.
Here are some common reasons why Life Tenants choose this path:
- Upgrade to a better or more suitable property of their choice.
- Relocate to a more desirable area.
- Transition out of rented or temporary accommodations.
- Create savings for retirement.
- Access funds from the sale of a previous property.
- Safeguard a portion of the property’s future value as an inheritance.
- Settle mortgages, loans, and other debts.
- Live rent and mortgage free
- Have security of tenure for their future
Life Tenancy Investments offer a unique and compelling approach to property investment, providing investors with attractive discounts while offering Lifetime Tenants the security of a peaceful, long-term residence. If you’re considering diversifying your investment portfolio or exploring new avenues in property investment, Life Tenancy Investments might be a path less travelled, but well worth exploring. For more information about Life Tenancies, get in touch. We’re always on hand with advice and guidance.
0808 301 6311 / https://networkauctions.lifetenancies.com/