How are Life Tenancies created?
Life Tenancies are created by Wakeley purchasing a property with a Lifetime owner; a person aged over sixty who has purchased the right to live rent free in the property.
It provides a unique home purchase option by reducing the price of their property purchase. This gives Lifetime Owners a chance to buy a property that may otherwise be outside their budget and live peacefully and securely in this property for the rest of their lives.
Here are some of the reasons why people choose to become Lifetime Owners:
- To buy a better or more suitable property
- Move to better area/closer to family
- Move out of temporary or rented accommodation
- Pay off mortgages/debts
- Release money for their future and comfort
Lifetime Owners are able to safeguard up to 50% of the property’s future value when they set up the Life Tenancy. If they’ve chosen this option, the investor’s purchase price is reduced to reflect the value and percentage of the property being purchased. As an investor, you would still be registered as the property’s owner at the Land Registry.
Even though you are the registered owner of the property, there are no property maintenance costs which fall to you, the investor. Read more about the property maintenance costs here.