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List of Questions

General

1. What are lifetime tenancies?

2. What are my rights and obligations as the owner of a lifetime tenancy?

Registration

3. What types of investors are most suited to lifetime tenancies?

4. How do I become a registered investor with More To Life?

Listings

5. How do I learn about new listings?

6. How are listings on More To Life priced?

Returns

7. How are my returns calculated?

8. What are some of the main transaction costs involved?

Process

9. What are the steps involved for the purchase of the property?

Services and Prices

10. What are some of the key services More To Life provides over the occupation period and their prices?

11. How frequently does my property get inspected?

Exit

12. What constitutes a terminating event for the lifetime tenancy?

13. Can I sell my property before a terminating event?


1. What are lifetime tenancies?

Life tenancies are created when an elderly homeowner sells his/her property to you while retaining the right to live rent free in it for the rest of his/her life. They do this to free up some cash that they need for their retirement expenditure, such as for living expenses, or to pay a down-payment on their child’s property, or to go on a holiday.

This provides you with a unique home purchase opportunity, by reducing the price of the property purchase significantly.

Acquiring a lifetime tenancy involves executing a sale and purchase agreement, and a tenancy agreement with an elderly homeowner; it includes entering into a management agreement with More To Life, in which we will handle all liaison between the two parties, such as collecting certificates of occupation, conducting annual inspections and arranging for valuations with a registered valuer if requested.

During a lifetime tenancy, the lifetime tenant will be responsible for maintenance and the bills, including quit rent, assessment, insurance, services and charges etc. They are contractually obligated to continue to maintain the property in a good standard at their own expense, and we will verify this with inspections should you engage us to conduct them. However, you are contractually responsible for the structure of the property, and will have to restore it to its original condition in the event of any damage, such as a fire.

On the occurrence of demise or permanent vacation of the property to go into care, vacant possession of the property will revert to you. You may choose to sell it for its appreciated value thereby realizing your return.


2. What are my rights and obligations as the owner of a lifetime tenancy?

The lifetime tenant will be responsible for maintenance and the bills, including quit rent, assessment, insurance, services and charges etc. They are contractually obligated to continue to maintain the property in a liveable standard at their own expense, and we will verify this with inspections should you engage us to conduct them.

You have to allow the home occupier to continue to remain in the property without any interaction (except through More To Life when appropriate). More To Life will get a fee of 0.2% of the acquisition cost p.a. (e.g. RM 1,000 p.a. for a RM 1m house) for managing interactions with the tenant. More To Life can help with collecting certificates of occupation, conducting annual inspections and arranging for valuations with a registered valuer if requested. You are also contractually responsible for the structure of the property, and will have to restore it to its original condition in the event of any damage, such as a fire.


3. What types of investors are most suited to lifetime tenancies?

Lifetime tenancies provide a unique and attractive asset class for high returns and diversification purposes.

By nature of this investment, it attracts long-term and patient investors who are usually investing for the next generation if they are retail investors. It is also very appealing to institutions such as pension funds and insurance companies. If, however, say after 5 years of buying a property, you have a need for cash, you can relist the property on our website. The agreements specify that the lifetime tenant will not be disturbed by a change in owners, and that the new owners will enter into the same arrangement with More To Life. You can list it at any price you like (no need for valuation and actuarial input), although you will probably have to provide an attractive discount to its then-current market value if the tenant is expected to live for many more years.

Using More To Life removes the hassle of sourcing properties, and these properties are well-maintained and in some cases enhanced.


4. How do I become a registered investor with More To Life?

If you would like to register as an investor, you should contact More To Life, and our representative will take you through the process.

We will collect your ID and check that you have not previously been deregistered on our platform. We will then provide you with the Registration Terms & Conditions.


5. How do I learn about new listings?

You can check our listings page from time to time, or you can additionally sign up for our newsletter, where you will be informed every time we list a new property.


6. How are listings on More To Life priced?

The seller will specify an estimated price for his/her/their property (e.g. RM 1,000,000) on our listing page. Based on this, the asking price (RM 400,000, if based on a 60% reduction) is calculated. The reduction is based on the life expectancy of the occupants; it is higher if the occupants are younger, and lower if the occupants are older. It is important to note that, for simplicity and objectivity, More To Life’s actuarial engine uses general mortality tables in Malaysia, which uses the age and sex of the applicant (together with the age of sex of spouse in the case of a joint life) only, in order to calculate the expected duration of the tenancy. It does not make any adjustments for the health of the applicant or any other factors. You will not be permitted to evaluate the health of the applicant.

You should verify that the asking price on the listing page is acceptable to you (we may provide some indicative data points on the estimated price to help, but we do not represent these as the value of the property, as that can only come from a registered valuer).

You will also have to bear the transaction costs, including your legal fees, cost of registration of the lease, stamp duty, and fees to More To Life.


7. How are my returns calculated?

You can view the Why Choose Life Tenancies page which explains all of the factors involved in the returns calculation.


8. What are some of the main transaction costs involved?

The main transaction costs include your legal fees, cost of registration of the lease, stamp duty, and fees to More To Life.


9. What are the steps involved for the purchase of the property?

Please view our investor step-by-step guide page.


10. What are some of the key services More To Life provides over the occupation period and their prices?

More To Life can help with collecting certificates of occupation, conducting annual inspections and arranging for valuations with a registered valuer if requested. The tenant has to pay for building insurance, and More To Life will also routinely check that they do.

More To Life will get a fee of 0.2% of the acquisition cost p.a. (e.g. RM 1,000 p.a. for a RM 1m house) for these services.


11. How frequently does my property get inspected?

Every year, we will get the home occupier to sign a Certificate of Occupation to indicate that they are still in residence in the property.

You have the right to engage us at reasonable intervals to inspect your property to ensure that it is being maintained as set out in the terms & conditions.


12. What constitutes a terminating event for the lifetime tenancy?

A terminating event in the case of a single occupier can be either demise or vacating the property for 6 months or more (e.g. if you were to move to a care home).

In the event of a joint life (with a spouse), the demise of both occupiers, or the vacating of the property for 6 months or more of the last remaining occupier (e.g. to a care home) is grounds to terminate the lifetime tenancy.


13. Can I sell my property before a terminating event?

If, say after 5 years of buying a property, you have a need for cash, you can relist the property on our website. The agreements specify that the lifetime tenant will not be disturbed by a change in owners, and that the new owners will enter into the same arrangement with More To Life. You can list it at any price you like (no need for valuation and actuarial input), although you will probably have to provide an attractive discount to its then-current market value if the tenant is expected to live for many more years.