9 – APPENDIX


  1. Glossary
  2. Higher Rate Tax Payer Calculations

  • 8%+ Yielding Areas

  1. Property Websites
  2. Assured Shorthold Tenancy Agreement
  3. Section 21 Notice
  • Standing Order Set Up Form
  • Yield Contribution Table

  1. Top 5 Annuities for Male, Female Aged 60 and Joint Life Last Survivor Male Aged 60/ Female Aged 55
  2. i) Glossary
Term Definition 
Yield This is the annual rental income expressed as a percentage of the total purchase price of the property.
LTV Loan to Value.  The loan is expressed as a percentage of the purchase price or valuation.  So a loan of £75,000 on a property costing £100,000 is a 75% LTV loan.
Interest Only Mortgage A mortgage where you only pay the interest of the amount borrowed and then settle the balance in full at the end of the mortgage term.
Repayment Mortgage A mortgage where you pay the interest and the capital over the duration of the mortgage.  This type of mortgage ensures that you pay off the mortgage at the end of the term.
Gearing Gearing an investment simply means borrowing to acquire the investment.  The higher the gearing the higher the investment.
Void Period The period when no monies are received i.e. when the property is empty.
Traditional Pension Fund A fund that has amassed from your contributions invested in shares and cash.
Annuity An income that is provide to you till death.  An annuity is purchased with the proceeds from your traditional pension fund.
Property Pension It’s a fund invested in property that delivers an income from the rent derived from these properties.
Pension The income receivable after you have stopped work.
  1. ii) Higher Rate Tax Payer Calculations

Traditional Pension Contribution Table

Age Personal Contribution Government Contribution Value of year’s contribution at age 65
40% (tax)
41 1200 480 5632
42 1251 500 5592
43 1304 522 5552
44 1360 544 5512
45 1417 567 5473
46 1478 591 5434
47 1540 616 5395
48 1606 642 5357
49 1674 670 5318
50 1745 698 5280
51 1819 728 5243
52 1897 759 5205
53 1977 791 5168
54 2061 825 5131
55 2149 860 5094
56 2240 896 5058
57 2336 934 5022
58 2435 974 4986
59 2538 1015 4950
60 2646 1058 4915
61 2759 1103 4880
62 2876 1150 4845
63 2998 1199 4810
64 3126 1250 4776
65 3258 1303 4742
51692 20677 129371

Income From Annuity

 

£45.78 x £129,371/1000 = £5,922.60 p.a. (say £5,923)

 

Summary

What you put in Total pension contributions for the 25 years £51,692
What you get out Annual income from the annuity till death £5,923 p.a. till death

 Property Pension 

Property 1 2 3 4
yrs 0-5 Yrs6-10 yrs11-15 yrs16-20 Yrs21-25 Yrs 26 onwards
Purchase price 30,000
Deposit (15% of purchase price) 4,500
Debt 25,500
Rent (8% yield) 2,400 3,063 3,909 4,989 6,368
Interest (5% APR) 1,275 1,275 1,275 1,275 1,275
Other costs (20% of rent) 480 613 782 998
1,274
Net Inflow Before Tax 645 1,175 1,852 2,717 3,819
After tax (40% Higher rate) 387 705 1,111 1,630 2,292
Fees 1,500
Total Deposit & Fees 6,000
Purchase price 38,288
Deposit (15% of purchase price) 5,743
Debt 32,545
Rent (8% yield) 3,063 3,909 4,989 6,368
Interest (5% APR) 1,627 1,627 1,627 1,627
Other costs (20% of rent) 613 782 998 1,274
Net Inflow Before Tax 823 1,500 2,364 3,467
After tax (40% Higher rate) 494 900 1,419 2,080
Fees 2,000
Total Deposit & Fees 7,743
Purchase price 48,867
Deposit (15% of purchase price) 7,330
Debt 41,537
Rent (8% yield) 3,909 4,989 6,368
Interest (5% APR) 2,077 2,077 2,078
Other costs (20% of rent) 782 998 1,274
Net Inflow Before Tax 1,051 1,915 3,016
After tax (40% Higher rate) 630 1,149 1,810
Fees 2500
Total Deposit & Fees 9830
Purchase price 62,368
Deposit (15% of purchase price) 9,355
Debt 53,013
Rent (8% yield) 4,989 6,368
Interest (5% APR) 2,651 2,651
Other costs (20% of rent) 998 1,274
Net Inflow Before Tax 1,341 2,443
After tax (40% Higher) 805 1,466
Fees 3,000
Total Deposit & Fees 12,355
Annual Profit Inflow 387 1,199 2,642 5,002 7,648
Property Age Deposit & Fees (outflow) Profit (inflow) Net Outflow Purchase Price (5% growth pa) Property Value at age 65 Debt (mortgage) Net Value
41
42
43
44
1 45 6000 30000 83579 25500 58079
46 0 387
47 0 387
48 0 387
49 0 387
2 50 7743 387 38288 83579 32545 51034
51 0 1199
52 0 1199
53 0 1199
54 0 1199
3 55 9830 1199 48867 83579 41537 42042
56 0 2642
57 0 2642
58 0 2642
59 0 2642
4 60 12355 2642 62368 83579 53013 30566
61 0 5002
62 0 5002
63 0 5002
64 0 5002
65 0 5002
35928 46151 -10223 179523 334316 152595 181721

So in summary:

What you put in Deposit & Fees less profits from the properties over the 25 years -£10,223 (say Nil)
What you get out Profits for years 26 onwards £7,648 p.a. forever

If you wish to sell the portfolio to purchase an annuity then there is no difference if you are a higher rate tax payer as all gains are subject to capital gains tax of 40%.

So the table for a higher rate tax payer would be:

Traditional Pension Property Pension Property Pension
(Buy&Hold) (Buy&Sell)
What you put in £51,692 Nil Nil
What you get out £5,119 p.a. £7,648 p.a. £6,618.44 p.a.
till death forever till death

So a property pension is still better than a traditional pension even if you are a higher rate tax payer.

Iii) 8%+ Yielding Areas

All these areas offer yields of greater than 8%. This ensures that you keep your personal contribution to a minimum and improves your ability to weather interest rate rises, voids and repairs.

  1. iv) Property Websites

The list of web sites below enables you to search for properties in the area you are interested in. All these sites direct you ultimately to the estate agent that is selling the property. There are also rental sites included in this list so you can keep abreast of the current market rental values of properties you have or are currently interested in.

I personally use rightmove.co.uk, ukpropertyshop.com, asserta.com and home.co.uk to find my properties. These sites seem professionally run and have a large database of properties for sale.

Sales & rental web sites
  1. www.rightmove.co.uk
  2. www.asserta.co.uk
  3. www.08004homes.com
  4. www.home.co.uk
  5. www.accommodation.com
  6. www.national-property-register.co.uk
  7. www.themovechannel.com
  8. www.accommodation-directory.co.uk
  9. www.fish4homes.co.uk
  10. www.homesdujour.com
  11. www.housedeals.co.uk
  12. www.propertyfinder.co.uk
  13. www.mondial-property.co.uk
  14. www.numberone4property.co.uk
  15. www.primelocation.com
  16. www.propertyads-online.com
  17. www.propertyfile.co.uk
  18. www.propertylive.co.uk
  19. www.saleourproperty.com
  20. www.ukpg.co.uk
  21. www.ukpropertyguide.co.uk
  22. www.underoneroof.com
  23. www.wheretolive.co.uk
  24. www.froglet.com
  25. www.move.co.uk
  26. www.halfapercent.com
  27. www.p4L.co.uk
  28. www.londonpropertyguide.co.uk
  29. www.cdproperty.co.uk
  30. www.propertydirect.co.uk
  31. www.rentalsandsales.co.uk
  32. www.estates-directory.co.uk
  33. www.ukhomesguide.co.uk
  34. www.accommodatingcompany.co.uk
  35. www.home-sale.co.uk
  36. www.housesearchuk.co.uk
  37. www.lookproperty.co.uk
  38. www.ukhousesales.co.uk
  39. www.londonshome.co.uk
  40. www.propertymatters.co.uk
  41. www.bainprop.co.uk
  42. www.haylingproperty.co.uk
  43. www.foxtons.co.uk
  44. www.shobrook.co.uk
  45. www.palmsagency.co.uk
  46. www.jtrproperty.co.uk
  47. www.coppingjoyce.co.uk
  48. www.milburys.co.uk
  49. www.davisestates.co.uk
  50. www.stonegateestates.co.uk
  51. www.forgetestateagents.co.uk
  52. www.nicholasirwin.co.uk
  53. www.ashtons.co.uk
  54. www.claridges-estates.co.uk
  55. www.pfivales.co.uk
  56. www.bansale.estates.co.uk
  57. www.dauntons.co.uk
  58. www.stratfordproperty.co.uk

Sales only web sites

  1. www.propertyworld.co.uk
  2. www.smartestates.com
  3. www.stoptolook.co.uk
  4. www.uk-property-sale-directory.co.uk
  5. www.daltons.co.uk
  6. www.homehunter.co.uk
  7. www.homepages.co.uk
  8. www.homes-uk.co.uk/hfs_home_uke.html
  9. www.homeselluk.com
  10. www.hotproperty.co.uk
  11. www.house-directory.co.uk
  12. www.thehousehunter.co.uk/default.asp
  13. www.housenet.co.uk
  14. www.houseweb.co.uk
  15. www.thelondonoffice.co.uk
  16. www.newhomesnetwork.co.uk
  17. www.properties-direct.com
  18. www.reale-state.co.uk
  19. www.smartnewhomes.com
  20. www.uk-property.com
  21. www.ukpropertysales.net
  22. www.wwpc.uk.com
  23. www.your-move.co.uk
  24. www.fairview.co.uk
  25. www.assertahome.com
  26. www.ukpropertyshop.co.uk
  27. www.partake.co.uk
  28. www.property-sight.co.uk
  29. www.prestigeproperty.co.uk
  30. www.tspc.co.uk
  31. www.homesalez.com
  32. www.hotproperties2000.co.uk
  33. www.your-life.co.uk
  34. www.agentfreesales.co.uk
  35. www.propertysales.co.uk
  36. www.globalmart.co.uk
  37. www.propertyfinderwales.co.uk
  38. www.paramount-properties.co.uk
  39. www.estate-agent-property.co.uk
  40. www.webhouses.co.uk
  41. www.property-go.co.uk
  42. www.capital-residence.co.uk
  43. www.michaeltucker.co.uk
  44. www.toplondonproperties.co.uk
  45. www.carltons-dundee.co.uk
  46. www.howards.co.uk
  47. www.owner-property-sales.co.uk
  48. www.property4uk.co.uk
  49. www.smithvalentine.demon.co.uk
  50. www.jparissteele.co.uk
  51. www.villagategroup.com
  52. www.wisemove.co.uk
  53. www.dmea.co.uk
  54. www.gatehouseestates.co.uk
  55. www.andrewpontin.co.uk
  56. www.walsall-estates.co.uk
  57. www.stewartwatson.co.uk
  58. www.newey.co.uk
  59. www.hamiltonbrooks.co.uk
  60. www.bennettjones.co.uk
  61. www.pro-net.co.uk
  62. www.lakewood-properties.co.uk
  63. www.pickitts.co.uk
  64. www.housemarket.co.uk

Rentals only

  1. www.homelet.co.uk
  2. www.rent.co.uk
  3. www.simprent.u-net.com
  4. www.citylet.com
  5. www.letonthenet.com
  6. www.letsrentuk.com
  7. www.lettingweb.com
  8. www.simplyrent.co.uk
  9. www.spacetorent.com
  10. www.studenthousehunt.com
  11. www.studentpad.co.uk
  12. www.palacegate.co.uk
  13. www.excel-property.co.uk
  14. www.assuredproprentals.co.uk
  15. www.cambridge-rentals.co.uk
  16. www.propertyrentals.co.uk
  17. www.faulknerproperty.co.uk
  18. www.flemingpropertyrentals.co.uk
  19. www.enaparkinsonpropertyrentals.co.uk
  20. www.the-net.co.uk
  21. www.mossoak.co.uk
  22. www.torent.co.uk
  23. www.net-lettings.co.uk
  24. www.property-go.co.uk
  25. www.sunkissed.co.uk
  26. www.letters.co.uk

v)Assured Shorthold Tenancy Agreement 

Here is an example of an AST.

ASSURED SHORTHOLD TENANCY AGREEMENT
1.    Tenancy agreement made the day of 10th January 2004
Between                                      [insert landlord’s name]
Of                                [insert landlord’s address]
(Herein after called the Landlord which expression shall include the person for the time being entitled to the reversion expectant on the determination of the tenancy hereby created) of the one part.
And                             [insert tenant’s name]
Of                                [insert tenant’s previous address]
(Herein after called the tenant which expression shall include his successors in title) of the other part;
Whereby it is agreed as follows:
The landlord lets and the tenant takes the dwelling house known as:
[insert investment property’s address}
(Herein after called the premises)
Together with the furniture, fixtures and effects therein upon an Assured Shorthold Tenancy within the meaning of section 19(a) of the Housing Act 1988 as amended by the Housing Act 1996, for the period of six months starting on the 10th December 2001 until 9th June 2002. The rent of £_____ per week, payable clear of deductions. Any money received for payment of rent for the premises is deemed to have been received from the tenant in advance on the first day of every week, the first such payment to be payable on the signing of this contract.
2.    The tenant agrees:
(a)   To pay the rent of £_____ per week in the manner aforesaid, without any reductions whatsoever.
(b)   To pay the agent upon signing hereof a deposit of £_____, to be held by the landlord against liability of the tenant arising under this agreement. The landlord will provide a written list of dilapidations within 28 days of the end of the tenancy, and a further 28 days will be allowed for discussion and negotiations to arrange settlement. After this period of time either party may revert to use of the law courts to resolve the dispute. If there are no dilapidations, the landlord will undertake to return the deposit to the tenant within seven working days of the end of the tenancy.
(c)   To pay all charges for gas and electric current supplied to the premises during the tenancy (all charges including any rental or other necessary charges) for use of the telephone if the tenant wishes to have the telephone connected, and the costs of reconnecting such services if they are withheld owing to the act or omission of the tenant. The tenant is also responsible for the water rates and council tax or replacement taxation for the term of the tenancy.
(d)   To keep all parts of the premises, including landlord’s furniture, fixtures and fittings in good and tenantable repair and in good decorative state and ventilated (fair wear and tear and damage by accidental fire, maintenance and repairs which are hereafter agreed to be done by the landlord and those which are statutory for section 11 of the Housing Act 1985 omitted); to maintain the garden to an acceptable standard.
(e)   Not to assign, underlet, charge or part with or share the possession or occupation of the premises or any part thereof and not to grant any licence to occupy the premises of any part thereof.
(f)     Not to use the premises or any part of for any purpose other than that of a private residence.
(g)   Not to carry on upon the premises any profession, trade or business, or let apartments or rooms, or receive paying guests or lodgers or place or exhibit any notice board or notice on the premises.
(h)   Not to use the premises for any illegal or immoral purpose.
(i)     Not to do or permit or suffer anything in the premises (or any building of which the premises form part) which may be or grow to be a nuisance or annoyance to the landlord (or any superior landlord) or to any occupier or tenant of any part of any building of which the premises form part;
(j)     Not to damage, injure, or make any alteration to the premises or any part thereof.
(k)   Within seven days of receipt thereof to send all correspondence addressed to the landlord directly to the landlord whose address forms part of this tenancy agreement. Any other correspondence of unknown names should be forwarded to the landlord. This should include any notice, order or proposal relating to the premises (or any building of which the premises forms part) given, made or issued under or by virtue or any statute, regulation, order, direction or by law by any competent authority.
(l)     To permit the landlord upon giving 48 hours notice (except in the case of emergency when no notice shall be required) to enter upon the premises with or without workmen and equipment and to view the state and condition thereof and, if necessary, to carry out any repairs, alterations or other works.
(m) To pay all fees, expenses and costs (including solicitors, councils, and surveyors fees) incurred by the landlord in preparing and serving notice on the tenant of any breach of any of the covenants on the part of the tenants herein contained notwithstanding forfeiture is avoided otherwise than by relief granted by the court.
(n)   To notify the landlord promptly after any event which causes damage to the premises, furniture, fixtures and fittings or which may give rise to a claim under the insurances of the premises.
(o)   Not to leave the premises vacant for more than 21 consecutive days and to keep the premises locked and secured when vacant, and the tenant is responsible for using the security provided at all times.
(p)   Not to change the locks to any doors of the premises, without the permission of the landlord; not to make any duplicate keys thereof but to return all such keys to the landlord at the end of the tenancy.
(q)   To pay for professional cleaning redecorations, and garden maintenance should the final inventory dictate that such services are, in reasonable opinion of the landlord, necessary.
(r)    Within the last two months of the tenancy to permit the landlord at reasonable hours, to enter and view the premises with prospective tenants or purchasers.
(s)   At the end of the tenancy to yield up to the landlord the premises, furniture, fixtures, and effects properly repaired, decorated, and kept in accordance with the obligations herein before contained, and to remove from the premises all the tenants effects.
(t)     No to remove any of the landlord’s furniture, fixtures and effects from the premises, and to leave them in the same location found.
(u)   To keep the furniture, fixtures and effects in their present state of repair and condition (reasonable wear and tear and damage by accidental fire expected) and to replace with similar articles of at least equal value, style and colour of any part of the said furniture, fixtures, fittings or effects, which may be destroyed or damaged (except as foresaid) so as to be incapable of being returned to their former condition.
(v)   Not to keep any pets.
3.    The landlord agrees:
(a)    That the tenant paying the rent hereby reserved and performing and observing the various agreements on their part contained herein shall peaceably hold and enjoy the premises during the tenancy without any interruption by the landlord or any person claiming under or in trust for them.
(b)    To carry out those repairs, liability for which is cast upon the landlord by sections 11-16 inclusive of the Landlord and Tenant Act 1985 as amended by Section 116 of The Housing Act 1988.
(c)     To pay the ground rent, service charges, and all sums payable by the landlord herein to the head landlord under the terms of the head lease.
(d)    To insure the premises against loss or damage by fire, explosion, and such additional risks as the landlord may deem desirable.
4.    The landlord and tenant agree:
(a)    If the rent hereby reserved or any part thereof shall be unpaid for 14 days after becoming payable (whether being formally demanded or not) or if any covenant or agreement on the tenant’s part herein contained shall not be performed or observed then in any of the said cases it shall be lawful for the landlord at any time thereafter to re-enter upon the premises or any part thereof in the name of the whole and thereupon the tenancy shall absolutely determine but without prejudice to the rights of the landlord in respect of any breach of the tenants covenants or agreements herein.
(b)    Ownership of all property left at the premises at the end of the tenancy shall immediately pass to the landlord who shall be entitled (though not bound) to sell the same for their own benefit and where necessary make charge upon to the tenant or the tenant’s deposit to refund any additional costs not recouped within the values received for the said articles.
(c)    Where the landlord or the tenant consist of more than one person, the covenants on their part in this agreement shall be joint and several.
(d)    Any notices served by the landlord on the tenant shall be sufficiently served if sent by second-class post or delivered by hand to the tenant at the premises or the last known address of the tenant.
(e)    To end the tenancy at or after six months, either party must give at least two months prior notice in writing.
(f)      In the event of maintenance that requires immediate attention outside office hours, and falls under the landlord’s statutory responsibilities under section 11 of the Housing Act 1985, the tenant may spend up to £50 to minimise damage or effect a repair without reference to the landlord, but should inform the landlord at the earliest opportunity. Any other repairs of any nature must be referred to the landlord or landlord’s agent. Any other repairs authorised by the tenant will be the responsibility of the tenant to pay.
It is hereby agreed that the parties hereto witness the day and year first above written.
AS WITNESS the hands of the parties hereto the day and year first above written.
SIGNED by the above named……………………………………………..
(The landlord)
In the presence of……………………………………………………………
SIGNED by the above named mentioned……………………………………
(The tenant)
In the presence of……………………………………………………………
  1. vi) Notice of Intention to Seek Possession (Section 21)

Here is an example of a Section 21 eviction notice:

ASSURED SHORTHOLD TENANCY

NOTICE REQUIRING POSSESSION

(Housing Act, 1988, Section 21 (1) (b))

TO:     [tenant’s name]

OF:     [property address]

I, [landlord’s name]

HEREBY give you notice that we require possession of the dwelling house known

AS:     [property address]

ON:    Monday 22nd September 2004

or at the end of the period of your tenancy which will end next after a period of two calendar months from the service upon you of this Notice.

DATED:        10th July 2004

SIGNED                                                                                                                    

[landlord’s name]

INFORMATION FOR TENANT

  1. If the tenant or licensee does not leave the property, the landlord or licensor must get an order for possession from the court before the tenant or licensee can lawfully be evicted. The landlord or licensor cannot apply for such an order before the Notice to Quit or Notice to Determine has run out.
  2. A tenant or licensee who does not know if he has any right to remain in possession after a Notice to Quit or a Notice to Determine runs out can obtain advice from a solicitor. Help with all, or part, of the cost of legal advice and assistance may be available under the Legal Aid scheme. He should also be able to obtain information from a Citizens’ Advice Bureau, a Housing Aid Centre or a rent officer.

NOTES

  1. On or after the coming to an end of a fixed term Assured Shorthold Tenancy, a court must make an order for possession if the landlord has given notice in this form.
  2. The length of the Notice must be at least two calendar months.

vii) Standing Order Set Up Form For Rent Collection

Here is a standing order set up form for your tenant to complete and hand in to their bank.

STANDING ORDER SET UP 

PAYER:

Name: Put the tenant’s full name here
Branch: Put the tenant’s bank branch and full address
A/C number: Put the tenant’s account number here
Sort code: Put the tenant’s bank branch’s sort code

PAYEE

Name: Put your full name here
Branch: Put your bank branch’s name and full address
A/C number: Put your account number here
Sort code: Put your bank branch’s sort code here

PAYMENT DETAILS:

Amount: Put the weekly or monthly rent here
Transfer date: Put the first date you want the transfer to occur here
Reference: Put the address of property here
Repeat: Put the frequency either weekly or monthly here
Last transfer date: Always put ‘To be notified in writing’

Please could you set up the above standing order on my behalf as soon as possible, to ensure that the first transfer payment is paid on time?

 

 

_____________________________________           _____________________

Signed                                                                                    Date

(the tenant)

_____________________________________

Print Name

 

Please now send on to the payer’s bank branch.


viii) YIELD CONTRIBUTION TABLE BASED ON YEARS LEFT TO RETIREMENT

YIELD
6% 7% 8% 9% 10% 11% 12%
Retire 6,000 7,000 8,000 9,000 10,000 11,000 12,000
ment income
YEARS 5 yrs C -1236.07 -1169.4 -1102.74 -1036.07 -969.4 -902.74 -836.07
TO O
RETIREMENT N
T
R
I
B
U
T
I
O
N
6 yrs -995.54 -928.87 -862.21 -795.54 -728.87 -662.21 -595.54
7 yrs -824.14 -757.47 -690.81 -624.14 -557.47 -490.81 -424.14
8 yrs -695.95 -629.28 -562.62 -495.95 -429.28 -362.62 -295.95
9 yrs -596.55 -529.88 -463.22 -396.55 -329.88 -263.22 -196.55
10 yrs -517.32 -450.65 -383.99 -317.32 -250.65 -183.99 -117.32
11 yrs -452.75 -386.08 -319.42 -252.75 -186.08 -119.42 -52.75
12 yrs -399.18 -332.51 -265.85 -199.18 -132.51 -65.85 0.82
13 yrs -354.06 -287.39 -220.73 -154.06 -87.39 -20.73 45.94
14 yrs -315.59 -248.92 -182.26 -115.59 -48.92 17.74 84.41
15 yrs -282.42 -215.75 -149.09 -82.42 -15.75 50.91 117.58
16 yrs -253.58 -186.91 -120.25 -53.58 13.09 79.75 146.42
17 yrs -228.29 -161.62 -94.96 -28.29 38.38 105.04 171.71
18 yrs -205.95 -139.28 -72.62 -5.95 60.72 127.38 194.05
19 yrs -186.11 -119.44 -52.78 13.89 80.56 147.22 213.89
20 yrs -168.38 -101.71 -35.05 31.62 98.29 164.95 231.62
21 yrs -152.47 -85.8 -19.14 47.53 114.2 180.86 247.53
22 yrs -138.12 -71.45 -4.79 61.88 128.55 195.21 261.88
23 yrs -125.14 -58.47 8.19 74.86 141.53 208.19 274.86
24 yrs -113.34 -46.67 19.99 86.66 153.33 219.99 286.66
25 yrs -102.58 -35.91 30.75 97.42 164.09 230.75 297.42
26 yrs -92.75 -26.08 40.58 107.25 173.92 240.58 307.25
27 yrs -83.73 -17.06 49.6 116.27 182.94 249.6 316.27
28 yrs -75.45 -8.78 57.88 124.55 191.22 257.88 324.55
29 yrs -67.82 -1.15 65.51 132.18 198.85 265.51 332.18
30 yrs -60.78 5.89 72.55 139.22 205.89 272.55 339.22
Interest Only 45.83 112.5 179.16 245.83 312.5 379.16 445.83
Assumptions: £100,000 purchase price, 85% LTV financing, 5% interest rate, 20% rental income loss
and repayment mortgage.
  1. ix) Top 5 Annuities for Male, Female Aged 60 and Joint Life Last Survivor Male Aged 60/ Female Aged 55

Male Age 60 Annuities - Purchase Price £10k

Company Level without guarantee Level guaranteed Escalating 5% p.a. compound without guarantee Notes
5 years
PRUDENTIAL £630.00 p.a. £627.12 p.a. £344.40 p.a. Minimum purchase price £20k
LEGAL & GENERAL £627.48 p.a. £625.44 p.a. £339.84 p.a.
CLERICAL MEDICAL £617.20 p.a. £615.19 p.a. £317.29 p.a. Minimum purchase price £5k
SCOTTISH WIDOWS £615.84 p.a. £612.60 p.a. £328.20 p.a.
STANDARD LIFE £612.00 p.a. £609.60 p.a. £334.80 p.a. Minimum purchase price £2k
CANADA LIFE £611.40 p.a. £609.72 p.a. £331.80 p.a. Minimum purchase price £10k

Female Aged 60 Annuities - Purchase Price £10k

Company Level without guarantee Level guaranteed Escalating 5% p.a. compound without guarantee Notes
5 years
PRUDENTIAL £604.39 p.a. £602.54 p.a. £308.09 p.a. Minimum purchase price £20k
NORWICH UNION £594.84 p.a. £593.04 p.a. £274.44 p.a. Minimum purchase price £5k
SCOTTISH WIDOWS £585.84 p.a. £582.72 p.a. £288.00 p.a.
LEGAL & GENERAL £585.60 p.a. £584.64 p.a. £290.04 p.a.
CLERICAL MEDICAL £581.70 p.a. £580.39 p.a. £276.79 p.a. Minimum purchase price £5k
CANADA LIFE £579.60 p.a. £578.52 p.a. £296.64 p.a. Minimum purchase price £10k

Joint Life Last Survivor Annuities (male age 60/female age 55) - Purchase Price £10k

Company Level without guarantee Level guaranteed Escalating 5% p.a. compound without guarantee Notes
5 years
PRUDENTIAL £529.30 p.a. £529.30 p.a. £241.82 p.a. Minimum purchase price £20k
LEGAL & GENERAL £512.52 p.a. £512.28 p.a. £233.76 p.a.
NORWICH UNION £511.56 p.a. £511.56 p.a. £194.84 p.a. Minimum purchase price £5k
CLERICAL MEDICAL £503.10 p.a. £503.10 p.a. £209.80 p.a. Minimum purchase price £5k
SCOTTISH WIDOWS £498.36 p.a. £497.04 p.a. £219.84 p.a.
CANADA LIFE £496.68 p.a. £496.68 p.a. £225.96 p.a. Minimum purchase price £10k