With a Life Tenancy agreement, instead of buying a property and then finding tenants, your Life Tenants come with the property from day one. And they pay a huge proportion of the property price. But once the deal is made, do the Life Tenants pay rent?

Well they do and they don’t. Let’s take a look at a definition:

“a fixed amount of money paid or received regularly for the use of usually an apartment, house, or business space.” Cambridge Dictionary.

Paying attention to the word ‘regularly’ suggests that Life Tenants do not pay rent as they will pay their fee just once. However, Life Tenancy Investments are still very niche and thus this definition would seem not to take into account this unique type of agreement between a landlord and a tenant.

We would argue that a Life Tenant absolutely pays rent. They pay a substantial fee upfront to acquire a lease agreement from you. And they pay it upfront for many years.

If you bought a buy to let property and a potential tenant offered you 10 years upfront rent, would you accept or decline?