Can a Life Tenant Share in the Equity of a Lifetime Tenancy Property?

Some Life Tenants wish to keep a share in the Lifetime Tenancy Property that they can pass on to their family

Download the Brochure

Our brochure covers a bunch of frequently asked questions


Life Tenants can choose to safeguard up to 50% of the property value (based an independent property valuation), in practice it is usually 10-20% and less than 1 in 10 of our properties have a co-share with the investor. In the situations where sharing does occur the amount the Life Tenant wishes to keep is deducted from the price in the initial calculation. What we mean by that is, say the property was worth £250,00 and the Life Tenant wished to keep 20% then the value will be calculated as follows, first we would deduct the £50,000 from the property value, this would leave £200,000 which we would then apply the discount relevant to the age of the tenant. This in effect means the Life Tenant is paying £50,000 plus the amount they are going to pay to live in the property for the rest of their lives.

What happens to share of a Lifetime Tenancy Property after the tenant passes?

When the Life Tenant dies his share would pass to his estate and the investor has the choice to buy out the share or sell and repay the share. The benefits to the Life Tenant who does keep an interest in the property is they feel much more connected to the property, and they are happy that they are able to pass on some of their wealth to their family. They are also happy they have been able to release sufficient funds to live comfortably in their retirement. The benefits to the investor is being able to access a more expensive property for a smaller initial sum. This sometimes means investors can buy two properties instead of one. It also gives investors peace of mind that the Life Tenant cares deeply about the property.