YOLO. The popular acronym which stands for “You Only Live Once” has finally made it into the Oxford online dictionary but this spontaneous, carefree attitude to life is no longer solely the preserve of today’s youth. Ever increasing numbers of over 50’s, dubbed Superboomers, are living life to the full with adventurous holidays, luxury goods and busy social lives.

 

Enjoying a ‘boundless existence’, as tech firm Huawei describes it, in later life comes at a cost however and not all Superboomers approaching retirement have made adequate pension provision for their golden years.

 

In fact the government has warned that almost 12 million people in the UK are failing to save enough for their retirement. And whilst Pensions Minister Steve Webb offered some reassurance in that the state will “always provide a decent safety net so people can get by, anyone wanting to see their standard of living maintained into old age needs to make their own provision too.”

 

So how can individuals make their own provisions?

 

The recovery of the housing market has not only been good news for the UK economy but also homeowners with rising prices resulting in over £807 billion worth of property wealth being owned outright by over-65 proprietors according to the latest Pensioner Property Equity Index from Key Retirement Solutions.

 

With such wealth within easy reach, more and more 60+ homeowners up and down the country are choosing to become a Life Tenant through the Life Tenancy Investment model.

 

Guy Charrison, Founder and Owner of the Guy Charrison Property Consultancy and hands on Life Tenancy investor explains,

 

“Life Tenancy Investments have long been the preserve of some of the largest financial institutions and listed property companies but they are now available for both individual investors and homeowners alike to benefit from.

 

“They offer a simple and straightforward way for retired people to significantly reduce the price of their next home in return for lifetime ownership. They become the Life Tenant of the property whilst the investor is afforded the opportunity to purchase bricks and mortar for a fraction of its current open market value offering superb potential for capital growth”

 

Guy continues,

 

“The Life Tenant has a lifetime lease on the property entitling them to live peacefully and quietly in the property rent free until they either pass away or permanently move into long term care. They just have to maintain and insure the building as they would anyway. For me, this is a win-win situation.”

 

One such case in point is Mr Freeman, a Superboomer who wanted to move out of his small Central London studio flat into a larger freehold property with a garage so that he could purchase his dream car – an American Thunderbird. He sold the ownership of his studio to an investor thus becoming a Life Tenant. In return he used the upfront lump sum to purchase another property complete with garage to house his new pride and joy, the Thunderbird.

 

So if you want to enjoy a ‘boundless existence’ in your later years but are concerned about funding a YOLO lifestyle then why not consider becoming a Life Tenant?

 

For more information on the process and Life Tenancy Investment opportunities available through Guy Charrison Property Consultancy, call today on 01344 851 007 or visit www.guycharrison.com.

 

With the UK economy back on its feet and the housing market booming, there’s never been a better time to invest in bricks and mortar, especially for pension provision.

For many individuals purchasing a traditional buy-to-let property has been the investment of choice but for years some of the largest financial institutions and listed property companies have been choosing a different yet equally simple, straightforward and high yielding investment path – Life Tenancy Investments.

Life Tenancy Investments have long been the preserve of institutions such as Grainger PLC (the largest owner of residential property in the UK), William Pears, Mountview Estates and Santander but now, well respected property expert Guy Charrison, in partnership with Wakeley Residential Investments Limited, is delighted to be able to bring this attractive opportunity to the everyday property investor.

 

So in a nutshell, what is a Life Tenancy Investment?

Life Tenancy Investments offer a simple and straightforward way to invest for your and your family’s future and are a viable alternative to buy-to-lets.

In return for the freehold or leasehold interest in their property being sold to an investor the occupier receive a lease for their lifetime with no rent payable. The occupier maintains and insures the building. The property then fully reverts to the investor on death or moving to long term care.

 

What makes a Life Tenancy Investment an attractive property investment?

The investor has the opportunity to purchase a property for a fraction of its current open market value offering superb potential for capital growth, especially in a rising market such as today. The investment will have a Life Tenant in residence at completion who will remain in the property until they either pass away or move into full time residential care.

The Life Tenant will receive an agreed sum of money up front in return for ownership for them to do with as they please.

 

How does it work in practice?

A property open to a Life Tenancy Investment is made available to buyers at a substantial discount to the open market value. Investors are able to purchase the property and will be the named owners on the title deeds. The ownership will be subject to the lifetime lease granted to the Life Tenant.

The property continues to be occupied by the Life Tenant who is aged 60 years or over. The Life Tenant has a lifetime lease on the property entitling them to live in the property rent free until they either pass away or permanently move into long term care.

At the point that the Life Tenant vacates the property permanently, the Life Tenancy ends and the investor has vacant possession of the property making them free to sell the property and realise their investment.

The investor is entitled to all the sale proceeds unless the Life Tenant has retained a percentage of the property value in which case the investor will send the Life Tenant’s proportion of the proceeds to them once the sale completes. If the Life Tenant has retained a percentage this is reflected in the investor’s purchase price of the investment.

 

What are the Investor’s main legal obligations?

To allow the life tenants to live peacefully and quietly in the property for the rest of their lifetime rent free.

 

What are the Life Tenant’s main legal obligations?

During the Life Tenant’s residence, they will repair and maintain the property as well as covering all associated expenditure including maintenance and repairs, utility bills, council tax and any service charges or ground rent (if applicable).

 

What happens when the Life Tenant vacates the property?

At the point the Life Tenant vacates the property permanently the property is the investors’ to do with as they wish. They can choose one of the following options:

ü  Sell the property and realise their investment with potential substantial capital growth

ü  Rent out the property and enjoy the monthly income obtaining a high return on capital as the property was purchased at a Life Tenant price

ü  Move into the property and live there

ü  Early exit opportunity – Investment can be resold to an alternative investor at an earlier stage if required

 

Why has Guy Charrison personally invested in Life Tenancy Investments for over 20 years?

“They are easy to manage as the occupier maintains and insures the building and are an ideal investment for you, your children or grandchildren. Historically these Life Tenancy Investments have offered a fantastic return on initial investment – they certainly have for me! The investment is growing in value due to the increasing age of the Life Tenant in addition to any capital growth – the ‘double line’ growth opportunity.

“Ideally, to maximise profit, Life Tenancy Investments should be purchased as medium/longer term investments but I also am aware from first-hand experience that investor’s needs may change over the years and there can be a requirement to realise the investment before the Life Tenant permanently vacates hence investments can be resold to an alternative investor at an earlier stage if required.”

 

On the market: Life Tenancy Investment opportunity in Canterbury, Kent

Property type:                                      2 bedroom terraced house

Independent Valuation:                   £120,000

Investment / Purchase Price:        £54,000

Value of Investment:                         £120,000

Discount:                                                £66,000

Percentage Offered:                           100%

Investment Terms:                            Life Tenancy

Tenancy Details:                                 Male 68 & Female 69

Tenure:                                                   Freehold

 

For more details contact Guy Charrison Property Consultancy on 01344 851 007 or visit www.guycharrison.com.