In the UK, hotels, parking lots, student campuses and retirement homes are sold by room, apartment and private parking space. The so-called 'units'. And private citizens own it. You can buy 1.2 and so on of hotel rooms or apartments in a nursing home. The hotel has a management company that runs it. And not only to them alone. This company enters into a management agreement and a guaranteed rent. As a rule, for 10 or more years with an income of 8-10% per annum. Under this agreement, in addition to payments, the management company undertakes to keep the rooms in perfect condition. Renovate, refurbish, change furniture .... And besides, there is usually a 'buy back' option - an obligation to buy back the property after the expiration of the contract. Tempting? Certainly.
Separately, it should be said about such an interesting and very promising segment of real estate, like nursing homes. In our country, a nursing home is considered something indecent. Or it looks like a place where old people live out their days. Meanwhile, in Europe and the rest of the world, it is perfectly normal to spend old age in such houses. They are social, public, and private. This is a wonderful business. And it's clear why. Life expectancy is increasing, the number of elderly people is increasing. Nursing homes are in short supply.
The average age of UK residents is growing: in 20 years the number of people over 65 will double. Of these, about 28% will be in the over 85 age group; 1/3 of all property assets that are in UK families belong to families with at least one person over the age of 65; More and more senior citizens in the UK are choosing to live in nursing homes. These institutions provide full-fledged round-the-clock care, a wide range of medical services, organized leisure and allow you to maintain the usual standard of living; Demand for premium nursing homes is projected to grow in the coming decades.
There is no catch. There is a system that was formed a very long time ago and practically unchanged since the time of William the Conqueror, which was laid down in 1066. The British are sincerely proud of this system. In theory, all land in England and Wales belongs to Her Majesty Elizabeth II. And all other mortals have only the right to use it and the buildings that are on it, under certain conditions. There are two types of use - freehold and leasehold. Freehold is something like our usual undivided and absolute property right. Owning real estate on a freehold basis (this applies to houses, apartments are never freehold), you become a full-fledged owner and you can do whatever you want with it. If only the local government was not against it. Leasehold is something like a long-term lease right. Buying real estate on a leasehold basis - you become the full owner of a document called a long-term lease agreement, which, in turn, gives you the exclusive right to use and occupy the space inside this very real estate. The contract can be concluded for any number of years - 22, 65 or 999. It is clear that the cost of such objects is determined, first of all, by the remainder of the contract term. The fewer years left, the lower the cost. What happens when the contract ends? You have to pay for it again. However, not everything is so dramatic - you can extend it in advance, 80 years before the end, by paying from 2 to 10% of the cost. Or for 50, then you will have to pay about 20%. It is clear that with a leasehold agreement of 500, say, years, your distant descendants will do it. If there will be. It is clear that rare real estate will last for 500 years. But the contract may be for 999 years ... That is, it does not scare anyone, more than 95% of real estate in England is sold on leasehold terms. In our case, given the obligation to buy back, there is nothing to fear at all.
Alexander Elizarov
Real Estate Agency "Park-Invest"
Saint-Petersberg, Russia
Managing Partner
Mobile/viber: +7 921 965-0664
Mobile: +49 176 349-531-52
Web: www.alexander-elizarov.ru
Skype: direktor0612
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