Life Tenancy Investments
Here at Wakeley, we specialise in creating great value, low maintenance property investments designed to complement an existing portfolio or kick-start a new one. Whether you are a novice investor looking to explore your options or a seasoned professional in the market for new opportunities, our Life Tenancy Investments could help you realise substantial returns.
What is a Life Tenancy Investment?
A life tenancy investment is a medium to long-term property investment with the potential for multiple factors to drive capital growth. Essentially, it allows you to purchase prime residential property at significantly below that the RICS vacant possession valuation: discounts are typically upwards of 45%.
All Life Tenancy properties are occupied by what’s referred to as a Lifetime Owner: a person aged over 60 who has purchased the right to live in the property, rent-free until they pass away or move into permanent long-term care. At this point, the life tenancy ends and the property is yours to do with as you like.
Why Are Life Tenancies Created?
A unique home purchase option, life tenancies give people aged over sixty the chance to buy a property that may otherwise have been outside of their budget. Becoming a lifetime owner means that they can enjoy the benefits ranging from moving to a better or preferred area, paying off debts to releasing money in their retirement whilst still having the security of a property for their lifetimes.
Why Are Investors Buying Life Tenancies?
From topping up a pension pot, a future investment for a child or as a Buy to Let for the future, Life Tenancies are highly versatile investments. Being such low maintenance residential property investments, they are seen by investors as something that can be purchased and left to grow in value with very little time commitment.
Below are a few benefits which our current investors tell us appealed to them when looking for alternative investment opportunities:
- Life Tenancies are available, on average, at 47% below the RICS vacant possession valuation
- Unlike many more traditional property investments like Buy to Lets, Life Tenancies are exempt from the increased 3% Stamp Duty. You will only pay the standard rate of Stamp Duty if your investment is in excess of £125,000