Making Financial Sense

Is renting at Auriens more cost effective than downsizing and buying a smaller home in later life?

Downsizing in later life is often a good strategy to allow gifting to family members and potentially reduce overall inheritance tax liability but this will depend on your individual circumstances. 

With a life at Auriens akin to having access to the services and amenities of a luxury boutique hotel, the community of like-minded individuals and the reassurance of help always at hand, this move can not only make financial sense, but also allow residents to make the most out of their later years.

How does this rental model compare to other later living ownership schemes?

Auriens have created a unique model whose aim is to remove the hassle of home administration, bills and maintenance.  An Auriens apartment is your home . . .

• You have secured tenancy and yet can remain flexible with 3 months’ notice, allowing you to move when circumstances change.
• There are no deferred or agent fees, which often amount to 28% of the property value after 7 years
• Utility bills and council tax are included as well as a curated event programme
• There is no service charge to pay
• You can enjoy the peace of mind knowing that leasing at Auriens removes the stresses of a future sale 

How do you put a value on the care, wellness and community at Auriens?

Enjoying life is a priority and each one of our residents has made their own personal valuation on the elements that matter most to them in later life. This could be wishing to release money early for family, reducing future IHT or investing in multiple income streams. Alternatively, it could be all about personal service, active aging, discreet care, community and living with exceptional facilities to bring reassurance and peace of mind.

How should I work out whether I can afford to move to Auriens Chelsea?

We are not financial advisers and if you are concerned, you should take professional advice. However, we  can refer you to firms we have worked with closely.

What if I'm undecided about downsizing or renting?

 Auriens can offer a great temporary solution in which to help make your mind up. Selling a long held home can be emotional at the best of times whilst selling and buying concurrently is one of lifes greatest stress points.  Auriens offers a place to take a break whilst you look into your options and once a decision is made the 3 month notice period keeps moving simple.

I would need to sell my main residence in order to move into Auriens Chelsea.  Would I pay tax on the sale proceeds? 

Not usually but this will depend on your individual circumstances.  There is currently an exemption from capital gains tax for gains on disposal of a property which you have occupied as your main residence.  If you have spent periods of time living somewhere else while you owned the property, then the exemption may not cover all of the gain

What if I cannot sell my property quickly?

The capital gains tax rules currently give you a ‘grace’ period of nine months after you move out.  For that time you are treated as occupying the property for capital gains tax purposes, even if you no longer actually do.

What if I keep my property and rent it to generate income?

You may need to pay income tax on the rental profits that you make.  Your taxable rental income will be the rent you receive less any allowable expenses, such as repairs, service charges and insurance.  Of course you would then have to look at what IHT arrangements may be in place and if you have any questions we recommend you take professional advice as tax rules can change.

What if I let my property initially and then decide to sell later on?

There may be capital gains tax to pay on part of the gain, but if you still own your property on your death, then your estate would be subject to inheritance tax on its value but your beneficiaries would inherit the property at its current value for capital gains tax purposes.  This means that if your beneficiaries sell the property after your death, they may only pay capital gains tax on the growth in value after your death but tax rules change and we recommend you take professional advice.

What if I live until 100, will I have enough money?

If you are unsure, we recommend you take professional advice. A financial adviser can work with you and look at your finances up to 100 years old and beyond to ensure that you are comfortable with the impact a longer life may have.

What if I require substantial care in the future?

At Auriens, care can be provided from as little as half an hour a day all the way up to 24 hour care via our care partner Draycott.   With the efficiencies of a team onsite at Auriens, costs are significantly reduced compared to receiving the same care at home.  The ability for our team to regularly visit for shorter time periods also often reduces the total number of hours of care required, helping residents retain independence as well as save money.

Furthermore,  a number of customers have expressed an interest in moving to a smaller unit in Auriens if their circumstances change and they require more care. This allows you to better manage your future expenditure. The Auriens team will of course facilitate and agree to put you on a waiting list for a smaller unit if the need arises.