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Life tenancies are very attractive investment opportunities to some investors, as they deliver very high returns, which are calculated as follows:

Reversionary Surplus

Properties are sold at a deep discount of 40-60% of the current market value of the property, depending on the age and sex of the seller and his/her spouse. Generally, the older the owners, the lower the discount. See how the discount is calculated on this page.

Transaction Costs

Your transaction costs will include the cost of an independent valuation report, your legal fees, stamp duty, and fees to More To Life.

Home Improvements

35% of home reversion tenants in the UK use some or all of their proceeds to improve the property, which will add value to the investment.

House Price Appreciation

House price appreciation in Malaysia is very significant and consistent. Over the last 26 years (1990 to 2016), terraced house prices have gone up by a Compound Annual Growth Rate of 5.9% p.a.:

This includes all locations in Malaysia, such as rural areas, and less-developed states. Thus house price appreciation in the Klang Valley (especially in some pockets like Petaling Jaya and Bangsar) may be significantly higher than this.

Furthermore, the sheer consistency of house price appreciation; as shown in the graph, house prices have appreciated every single year in the past 26 years (1990 to 2016) except for the two years following the Asian Financial Crisis in 1997.

Maintenance and Expenses during Occupation

Unlike other tenancies, in the situation of a life tenancy, because the property is continuously tenanted (and the tenant expects to continue to live there until they pass away), it is usually well-maintained. In fact the tenant is contractually obligated to continue to maintain the property at a good standard at their own expense, and we will verify this with inspections should you engage us to conduct them.

The lifetime tenant will be responsible for all of the bills, including quit rent, assessment, insurance, services and charges etc.

You will have to pay 0.2% of the acquisition price p.a. (around RM 1,000 p.a. for a RM 1m property) in annual fees to MTL for managing interactions with the tenant.

You are only 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.

Exit Costs

At the occurrence of a terminating event (demise or permanent vacation of the property), vacant possession will revert to you, and you may, if you choose to, arrange for the property to be sold.

Profile of Investor

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.

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

Secondary Listing

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.