What Are 'Life Reversions'..
Life reversions are a well-guarded secret of the Professional Property investor, they are low maintenance and available for purchase at a fraction of the properties current market value.
In essence the property is occupied by the Tenants who own a “Lifetime Lease” on the property while you are the Registered Owner of the property. The Life Tenant is responsible for all maintenance and upkeep costs including; utility bills, council tax, any service charge or ground rents where applicable. You simply buy the property at a discounted market rate.
Then when the property vacates, i.e. when they pass away or move into full time residential care, you decide how to further maximise its potential buy renting it, developing it or simply selling on the property keeping 100% of its value.
On some occasions the Lifetime Tenants have at the
point of their Lifetime lease being created, retain a percentage of the prop erty value. This is reflected in the
amount paid for the property by the investor, who then
shares that percentage.
By their nature funding is not possible at the point of purchase so these are a perfect investment for investors with disposable cash.
Typically the properties are purchased at a 50%+ discount on the properties market value so even if over the period of ownership there is no capital growth in the UK residential property market, you will have an asset that will increase your investment by around 100%.