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The good feeling of being safe: lifelong right to housing.

AN INVESTMENT THAT LETS YOU PLAN YOUR FUTURE

TERRAGON is the pioneer of age-appropriate life tenancies in Germany. This model is an evolution of the historical principle of providing security and has a rich tradition in Germany. As long ago as the Middle Ages, vulnerable and single persons were among those who transferred ownership of their possessions to their local monastery, convent or hospital. In return, they were cared for and housed for the rest of their lives. In modern civil law, life tenancies exist in conjunction with anticipated succession rights, by which ownership of property is transferred to children, while parents retain life-long residency rights.

IMPORTANT FOR YOU: THE LEGAL BASIS FOR LIFE TENANCIES

It is from this historical principle of life-long tenancies that Initium AG developed its life tenancy model, which is based on the provisions of Section 1093 of the German Civil Code (BGB). In return for a one-off provisioning payment, the “life-tenant” is granted life-long residency rights, which are typically recorded in the official land register. 

In contrast to regular tenancies, a life-tenant’s lease cannot be cancelled on the grounds of a landlord’s right to personal use. At the same time, the life-tenant is free to cancel their tenancy at any time. When the life-tenant moves out, or when they die, the residual amount of their provisional payment is reimbursed on a pro rata basis to the life-tenant or their legal successors.

LIFE TENANCIES – AN INTELLIGENT SOLUTION WITH A LONG HISTORY

The grantor of the life-tenancy, for example a charitable foundation, is able to increase its return on investment, secure attractive refinancing conditions and free up financial resources for new projects or other activities. The life tenancy model means that an investor retains ownership of the real estate at all times. And when it comes to re-tenanting, it is always possible to repurpose the apartment as a day care or outpatient nursing care station. 

The life tenancy model is not only attractive for newly developed real estate, it can also be applied to existing objects.

A large number of well-known German charitable foundations have registered great interest in the life tenancy model for their senior living complexes. The Agaplesion Residenz Havelgarten in Berlin, designed and constructed by TERRAGON, is a prime example.  

AT A GLANCE: THE ADVANTAGES OF THE LIFE TENANCY MODEL

ADVANTAGES OF LIFE TENANCIES FOR INVESTORS:  

  • reduced equity requirements
  • yield maximization via reduced bank financing
  • sole ownership of the real estate with no limitation of decision-making freedoms
  • easily adaptable to changes in demand and evolving housing and nursing care concepts

ADVANTAGES OF LIFE TENANCIES FOR LIFE TENANTS:

  • one-off payment rather than life-long rental payments
  • the price of a life tenancy is determined individually, depending on age and the location/size of the apartment
  • more money available each month thanks to reduced housing costs (just utility bills and service fees)
  • landlord can’t terminate lease for personal use
  • maximum flexibility thanks to termination rights and pro rata reimbursement of provisioning payment – to you or your heirs

LIFE-LONG TENANCIES – IN GOOD HANDS WITH THE SPECIALIST