Life Tenancy Investments are a form of property investing that is becoming popular in the United Kingdom. It involves purchasing a property that comes with a Life Tenant who is entitled to live in the property for the remainder of their life in exchange for paying a significant proportion of the property price.
Here are 5 reasons we believe investing in a Life Tenancy is more beneficial than a Buy-to-let property:
1. Cheaper Entry to the UK Property Market
The biggest pull for Life Tenancy Investments is the upfront discount. Depending on the age of your Life Tenants, you could benefit from an enormous 35-60% discount on an investment property. With such large discounts, investors can get into the UK property market with a much smaller sum. (Our investments start from just £50k).
2. No Maintenance of Investment Property
Maintenance costs can be a drain on Buy-to-let profits, however with Life Tenancy Investments, the Life Tenants are contractually responsible for all maintenance and upkeep of the property. So, no replacing cookers, curtains or carpets for Life Tenancy Investors.
3. Your Tenants Actually Care About the Property
With Buy-to-let properties, there’s often a lack of respect for the home. This is generally because it is a short term (1-3 years) place for them to stay. With Life Tenancy Investments, the property is their permanent home and, in most cases, their very last home. Thus, the respect level towards your investment property is far greater.
4. You’re Actually Helping Out
With Life Tenancy Investments, you’re helping people. You’re often supporting elderly tenants to enjoy their final years in a nicer home than they can afford and helping them secure a home for the reminder of their lives without having to worry about rental or mortgage payments.
5. It’s Brexit Proof
Brexit has some international investors cautious about participating in the UK property market. If the housing market did suddenly take a hit, then a Buy-to-let property could fall in value. However, with Life Tenancy Investments and that enormous upfront discount, the property would have to lose the same amount of value as the initial discount before you could lose a penny.
Many private investors and funds are taking advantage of this unique property investment strategy. If you would like to join them and learn more about Life Tenancy Investments, click here to learn more.