LTI’s have been available in the UK since 1975 but until recently have only been
available to Family Offices, Banks and other Institutional Investors. Now, however, they
have been extended to become available to any individuals or corporate entity who
wish to make a medium to long term investment in UK Residential Property and secure
a huge discount on the open market value of the property!
LTI’s enable an investor to purchase a residential property for significantly less than the
RICS vacancy possession valuation (essentially market value). Discounts can be as much
as 60%! The properties are occupied by 1 or more “Life Tenants” - these are usually the
people already living in the house and in return for selling you their home now at a
massively discounted rate you agree to allow them to live in the property rent-free until they pass away or go into long-term care. At that point, you (the investor) can either sell the property at full market value to thus gain the huge capital uplift (profit) in the value of the property or, of course, you could hold and rent or even gift it to a family member.
The key features are:
- You own the house but are not responsible for maintenance and insurance costs - your Life Tenants are.
- It is a low-risk asset class compared to equities or alternative investments – property spends the vast majority of time gaining value, not dropping.
- A discount of up to 60% of the RICS valuation is available – there is typically no other scenario in which a property can be purchased with such a large discount.
- The purchase is exempt from the 3% Additional Rate for Second Home Owners/Property Investors.
- The investor is the registered owner on the Title Deed i.e. very secure.
Life Tenancies last on average 15 years. In that time, on a property with a Market Value of say, £250,000 purchased at a discount of 60% (£100,000) could see a ROI of over 300% i.e. 20% per annum growth with NO liability for maintenance or insurance, in fact, no commitments at all. There are VERY few investments that can match such a high level of expected return over a similar period.
If you would like to know more about this investment, simply click on the link below and complete the quick enquiry form or email us at enquiries@princewealth.co.uk and we will be in touch.
Disclaimer
Prince Wealth Limited is a marketing agent for developers and other third party investment providers and whilst we endeavour to ensure the accuracy of information contained on our website, including figures and forecasts at the time of publication, Prince Wealth Limited does not guarantee or take responsibility for their accuracy. Prince Wealth Limited cannot offer financial advice and is not authorised by the Financial Conduct Authority to do so. Please be aware, that purchases of overseas properties and other overseas investments are not regulated by the Financial Conduct Authority. All investors should seek relevant advice in relation to their personal circumstances before proceeding. Prince Wealth Limited acts as a promoter and/or introducer for third parties. Authorisation from the Financial Conduct Authority is required for any advice on SIPPs. Prince Wealth Limited recommend you seek independent pension advise from FCA authorised pensions advisers. Please refer to the FCA website www.fca.org.uk for this purpose. Quoted figures are not guaranteed and are dependent upon investment performance. Past performance is not a guarantee of future performance.