Life Tenancy Investments

Life Tenancy Investments

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.

1. What are Life Tenancies?

A Life Tenancy is a medium to long-term property investment with the potential for multiple factors to drive capital growth. Essentially, it allows you to purchase residential property at significantly less than the RICS vacant possession valuation: discounts are typically upwards of 40%. Life Tenancy properties are occupied by a Lifetime Tenant: a person aged over sixty 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 wish.

The Life Tenant is legally responsible for all maintenance and upkeep costs in the first instance

  • low-risk asset class
  • the average discount is 50% off the property’s RICS vacant possession
  • valuation exempt from the 3% stamp duty surcharge on second homes*
  • you would be the registered owner of the property at Land Registry

2. How and why are Life Tenancy Investments created?

This unique home purchase option gives people aged over sixty the chance to buy a property that may otherwise be outside their budget and live peacefully and securely in this property for the rest of their lives.

  • Buy a better or more suitable property
  • Move to a better area
  • Move out of rented or temporary accommodation
  • Release money from the sale of a previous property
  • Safeguard a percentage of the property’s future value
  • Pay off mortgages, loans and other debts

Life Tenants are able to safeguard up to 50% of the property’s future value when they set up the Life Tenancy. If they’ve chosen this option, the investor’s purchase price is reduced to reflect the value and percentage of the property being purchased. As an investor, you would still be registered as the property’s owner at Land Registry.

3. Your Responsibilities

Life Tenants are entitled to the peaceful enjoyment of the property, and as an investor it is your responsibility to ensure that they can achieve that. There are other responsibilities, such as ensuring the buildings insurance is maintained and liaising promptly with the Life Tenants when necessary, but these responsibilities can be completely taken care of by our property management service. All Life Tenancy investments include a property management package as standard at a small annual fee. This ensures that all of the investor responsibilities are managed and helps to maximise potential investment returns.

Property Management Includes

  • Management of all communications with the Life Tenant
  • Conducting inspections of the property
  • Annual reporting on investment performance
  • Management of resale opportunities

4. Purchasing Process Overview

Stage 01. Life Tenant Qualification

  • Life Tenant qualified to enter into a Life Tenancy
  • Discount and purchasing budget agreed
  • The Life Tenant commences property search and identifies property

Stage 02. Property Agreed


  • Complete detailed property research
    Set purchasing parameters
  • Property purchase agreed
  • Solicitor instructed

Life Tenant:

  • Lifetime Lease purchase agreed
  • Solicitor instructed


  • Life Tenancy Investment opportunity presented

Stage 03. Conveyancing


  • Conveyancing

Life Tenant:

  • Conveyancing


  • Investment purchase agreed
  • Solicitor instructed
  • Conveyancing

Stage 04. Exchange / Completion


  • Simultaneous exchange
  • Simultaneous completion
  • Property purchased
  • Lifetime Lease sold
  • Life Tenancy investment sold

Life Tenant:

  • Simultaneous exchange
  • Simultaneous completion
  • Property purchased
  • Lifetime Lease sold
  • Life Tenancy investment sold


  • Simultaneous exchange
  • Simultaneous completion
  • Property purchased
  • Lifetime Lease sold
  • Life Tenancy investment sold

5. House Price Inflation and Life Tenancy

At the end of the Life Tenancy, you will benefit from exposure to House Price Inflation on the full value of the property purchased, despite having purchased this property at a discount. As a guide, here’s how house prices have changed over the past twenty years:


% Increase in house prices in the past 20 years


% Average annual increase

6. Protected Returns

Whilst a Life Tenancy investment provides disproportionate exposure to the potential benefits of House Price Inflation, it also provides protection from the potential impact of sharp or long-term deflation.

70 years old – Single Male

15 years – Assumed tenancy period

£111,000 – Investment purchase price

£200,000 – Vacant possession value

In this example, it would take 15 years of house price deflation at 4% per year for the investor to make a gross loss** on their investment.

* Source: Land Registry data 2022, properties in England and Wales
** Gross loss does not take into consideration sales, legal or any other fees or costs. It also assumes the Life Tenancy has ended.

7. Capital Growth

As the Life Tenant increases in age, the investment increases in value. Simply put, the older the Life Tenants are, the higher the likelihood that the property will return to you, the investor, hence the higher investment value. Similarly, any improvements made to the property by the Life Tenant, such as decoration or renovation, may also contribute to a rise in investment value. Without allowing for the impact of House Price Inflation or Deflation, there’s an opportunity for significant capital growth on the initial investment and the potential to resell the investment at any time.

8. Investment Illustration

The examples below are based on a £250,000 RICS vacant possession valuation and an assumed 4% annual House Price Inflation. They show how your initial investment and your returns vary depending on the length of the Life Tenancy, percentage of the property owned and the age of the Life Tenants.

Example One – Male 62 & Female 65

Investment Price: £102,056
Ownership: 100% or £250,000
Discount: £147,944 or 59%

House Price InflationTotal Capital GrowthROI
5 Years£54,163£202,107198%
10 Years£120,061£268,005263%
15 Years£200,236£348,180341%
20 Years£297,781£445,725437%

Example Two – Male 75 & Female 75

Investment Price: £144,852
Ownership: 100% or £250,000
Discount: £105,148 or 42%

House Price InflationTotal Capital GrowthROI
5 Years£54,163£159,311110%
10 Years£120,061£225,209155%
15 Years£200,236£305,384211%
20 Years£297,781£402,929278%

Example Three – Male 69

Investment Price: £66,250
Ownership: 50% or £125,000
Discount: £58,750 or 47%

House Price InflationTotal Capital GrowthROI
5 Years£27,082£85,832130%
10 Years£60,031£118,781179%
15 Years£100,118£158,868240%
20 Years£148,890£207,640313%

9. Resale Opportunities

Life Tenancy investments can be traded between investors before the asset reverts. At this point, the investment valuation would be based on the following factors:

  • The age and number of Life Tenants
  • The property’s vacant possession value
  • Any improvement work undertaken by the Life Tenant
  • Any safeguarded percentage held by the Life Tenant

10. End of Life Tenancy

The Life Tenancy ends when the Life Tenants no longer live permanently at the property. This can be triggered by one of three events: the Life Tenants moving into permanent care, passing away or otherwise choosing to end the Life Tenancy. At this point, the property is yours to do with as you wish.

  • Sell the property on the open market
  • Rent the property out
  • Move into the property yourself
  • Give it to a loved one as an early inheritance

11. Frequently Asked Questions

Who is the Provider?

The provider is the investor which purchases the property and gives rights to the Life Tenant to live in the property for the rest of their lives in exchange for a significant discount.

Who is the Life Tenant?

The Life Tenant is the party whom will have the right to live in the property for the rest of their life or until they permanently vacate the property. They are either singles or couples aged 60 or above.

Isn’t this just Equity Release?

It’s not too dissimilar to Equity Release because the Life Tenants often free up equity from the previous home. However, in addition to freeing up equity they are able to move into a new home of their choice and never have to worry about rental or mortgage payments.

Are there any hard sales tactics used on the Life Tenants?

Absolutely not. There is a strict process of qualifying the would-be tenants to ensure they and their family members fully understand the legal aspects and implications of the transaction.

What is the share?

The share represents the percentage of equity that the investor will purchase in the property. Some Life Tenants prefer to hold a small percentage of equity in the property to ensure funds being passed down.

Can these properties be financed with a mortgage? Or be refinanced after purchase is complete?

It is highly unlikely you can obtain a mortgage for a Life Tenancy investment.

Are the investment prices negotiable?

The prices are fixed due to the discounts already in place and the speed of each sale.

Who will legally own the property?

With Life Tenancy Investments, the investor will become the legal owner. This will be legally binding and be registered with the Land Registry. This will all be handled by the appointed solicitor.

Is this type of investment subject to capital gains tax?

The levels of tax payable would be dependent on your unique circumstances and professional advice should be sought.

Are these property investments purchased subject to stamp duty?

Yes, however many of the investments offered will be below the threshold of £125,000 and so there would be no stamp duty to pay. In addition, life tenancies are exempt from the additional stamp duty surcharge on secondary property.

Who is responsible for the maintenance of the property?

The Life Tenants are responsible for all upkeep and maintenance of the property.

What happens if one of the occupants remarries?

If one of the Life Tenants remarries, they must first have the provider’s written permission that their new partner can move in and the new partner must sign a waiver to confirm they have no legal right to remain in the property once their partner has permanently vacated.

Can I meet or interview the potential Life Tenants?

Our experts, whom have 40yrs experience, will be qualifying all potential Life Tenants. Providers may visit the property once every three years.

What is the LTI Hotlist?

The Lifetime Tenancy Investments (LTI Hotlist) is an email list that we use to send investors the properties that become available for investment. It is the only way investors can be informed.

What are my liabilities during their occupancy?

Essentially none. We provide a management service which means we provide you with an annual report on occupancy, condition and market value.

What if the Life Tenant outlives the Provider?

The ownership of the property will go through the regular probate process specific to the owner’s circumstances.

What if the Life Tenant outlives the Provider?

The Life Tenants will have a legal obligation to maintain the property to a high standard. Failure to do so could mean the termination of the plan. However our management service ensures this would not happen.

How do I know when the occupants have permanently vacated the property?

The management team are in frequent contact with the Life Tenants and their families. Should any change in the tenancy occur, they will inform the provider.

What risks are involved for an investor?

As with all investments there are risks involved. However, in the 40+ years this model has been operating, there has never been a situation where the contents of legalities have been challenged. The only uncertainty is the timeline of which the life tenancy will last.

What if the UK property market crashed?

Because of the enormous discount from the initial purchase price, it’s unlikely that the value of the property could decrease in value in excess of the initial discount.

Is this kind of investment regulated?

The product is not regulated; we do not need to be regulated to create them and you do not need to be regulated to own them.

What is RICS?

The Royal Institution of Chartered Surveyors is a professional body that accredits professionals within the land, property, construction, and infrastructure sectors worldwide. Each property is supported by independent valuations by certified RICS surveyors ensuring the accuracy.

Can I appointment an independent surveyor?

Yes, you are entitled to have a second surveyor value the property, however this will be at your own cost.

In addition to the purchase price, what other fees will I have to pay?

  • £5000 refundable reservation fee to take your desired property off the market during the exchange period.
  • Solicitor fee for exchanging contracts which is dependent upon your choice of solicitor. £1000 is the general benchmark that we see.
  • Management fee of £300 per year per property.

Why do I have to pay a reservation fee?

Due to the demand and speed of each Life Tenancy Investment we charge a fee to ensure commitment to the purchase.

Can I see the contract before I reserve a property?

Every Life Tenancy agreement has a standardised contract. You are more than welcome to view the template before reserving. Once you reserve you will receive your specific contract.

Can you appointment a solicitor for me?

We can recommend a solicitor that has previously exchanged on many Life Tenancy Investments.

Do I need to purchase insurance for the property?

No, the Life Tenant is required to purchase building insurance.

Can the properties be purchased by a Special Purpose Vehicle (SPV)

Yes, the properties can be owned by an SPV, however please consult legal advice on this subject.

Whilst every effort has been made to ensure the accuracy of the information in our frequently asked questions and answers we must inform all parties to not accept every statement as legally binding. When investing into a Life Tenancy, a contract will be produced with full details of the agreement between both parties, this will hold the legally binding words. Guy Charrison works with Homewise Limited (Company number 04256355) who will manage the property and liaise between each property’s Provider and Life Tenants.

12. Next Steps

  1. Join The LTI Hotlist
    Join the Life Tenancy investments (LTI) Hotlist to to gain exclusive access to available properties. You’ll benefit from regular updates full of our latest investment opportunities.
  2. Choose Your Property
    Pick the most appropriate property [or properties] for your portfolio and then reserve a unit.
  3. Exchange
    Appoint a solicitor to help you through the exchange process. This would typically take around 28 days.

13. General Provisions

This document is for the use of the addressee only. Recipients are required to keep the contents of the information contained in this document confidential. It may not be copied or distributed or otherwise made available by any recipient without the express consent of Guy Charrison Property Consultancy (“the Company”).

To the best of the knowledge and belief of the Company, which has taken all reasonable care to ensure that such is the case, the Company believes the information contained in this document is in accordance with the facts and does not omit anything, which is likely to affect the importance of such information. Statements of belief, projections, forecasts and expectations represent the Company’s own assessment and interpretation of the information available to it at the date of this document.

These assessments and interpretations are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors beyond the Company’s control and as such the Company does not represent that the statements, views, projections or forecasts are factually correct at the time of publication or at any other date.

The recipients must determine themselves what reliance they should place on the statements, views, projections and forecasts.
We recommend you to carry out your own due diligence and not solely rely on the information provided.

Neither the Company, nor the proposed arrangement concerning the property which is the subject of this document, are regulated by the Financial Conduct Authority.

You should carefully consider whether you wish to purchase a property and you should carefully consider seeking independent financial advice from your financial adviser prior to making any investment.
Dated: November 2022

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