Legacy Preservation Scheme
Often it is difficult to avoid selling a property to pay for our Care costs when that day arrives and we are not able to care for ourselves in our own home.
If you plan now we are able to offer an alternative where you have the choice to retain full ownership of your property and pass on a lifelong earned wealth to Family, Loved ones and Beneficiaries rather than sell to pay for Care costs.
Main Benefits
- Provide Income from property to pay towards Care costs
- Provides the choice to avoid selling the property to pay for care costs
- Preservation of your property legacy and ability to exercise the ability to pass on wealth to Family, Loved ones and Beneficiaries.
- HMRC authorised scheme which allows the avoidance of paying any tax on income up to around 1/3 of the value of the property (Unlike renting via a Tenancy Agreement or Occupation Contract agreement to an individual where tax is paid at the marginal rate for all income). For example on a property valued at £3000,000 you can earn tax free income up to £100,000. This option for the income to have a significant Tax free entitlement is subject to meeting and the support to meet additional HMRC Capital Allowance conditions.
- This allows a great deal more income per month than traditional renting.
- Passive Income paid at market let rate per month (with proper contract)
- Property Managed as Serviced Accommodation thereby eliminating the usual Tennent challenges.
- None of the hassle and risks associated with residential rental - (Section 21 is being removed from the Housing Act 1988 making it harder than it already is to remove difficult tenants). We would set up the property as what is called a Serviced Accommodation for corporate clients, comprising - professionals travelling for work such as, contractors, those in the area for business, film and media, and NHS staff. This is as opposed to a residential rental, thereby eliminating the need to deal with tenants on the new legal “Occupation Contracts” who would be able to claim primary residence that would bring about eviction challenges.
- No need to handle Tenant deposits (This is now a formal process which would otherwise require the Landlord to take the “RentSmart Wales” formal course, exam and registration of the property)
- Lower energy bills than having residential rental (If utilising as a HMO House of Multiple Occupation)
- No Letting agent fees.
- The Property will be cleaned and bedding changed for every new client.
- We hold client Credit Card details for clients and charge should there be any damage (Explicit in the T&C’s which clients will sign).
- Regular report on the property.
- The property owner still has the option to use the property for arranged dates without concern over its condition as cleaners will be in to return the property to show home condition as each client leaves an occupation.
- We will be able to maintain a particularly close watch on each property.
The customers/clients
We anticipate most of our customers will be professionals travelling for work such as, contractors, those in the area for business, film and media, NHS staff and leisure travellers. We would aim to secure mid to long-term (i.e., several months at a time) to minimise as far as possible the number of client changes in the property.
The property will be maintained in excellent condition and utilised for short term lets up to 6 months and is outside the housing act thereby clients do not have the right that a normal “Tennant” would have.
Property Enhancements
To successfully market the property, we would bring the property to show home condition through visual enhancements via new paintwork and furniture on top of any general maintenance or replacement of white goods. Depending on the amount of work needed on the property, we might need to agree a number of months’ rent free to give us time to bring it to operational standard, but any loss of income from this will be made up by an increase in the property’s value when you wish to sell. There is an option for the income to have a significant Tax free entitlement (Subject to meeting and the support to meet additional HMRC Capital Allowance conditions)