100 additional properties already signed up for pension schemes in 2020
Frankfurt am Main, 18 May 2020 – Deutsche Leibrenten Grundbesitz AG continues to grow: The start of May saw the property pension scheme market leader in Germany pass the mark of 500 signed contracts in total. It is sticking with its ambitious target of up to 400 new customers for this year alone, despite the measures introduced due to the COVID-19 pandemic.
“Even during the corona crisis, we are still able to sign an average of at least one contract per day”, says Friedrich Thiele, CEO of Deutsche Leibrenten AG. “For many senior citizens, now is the right time to make arrangements for the future. They are seeking security for themselves and for their partners, and to untie themselves from property maintenance obligations. Over recent months, we have arranged video conferences, conducted discussions over garden fences, had long telephone calls, and succeeded in helping our clients to reach the deal they wanted, all under the strictest hygiene controls. The quality of the cooperation between our partners and notaries is also helping to establish trust in our business among senior citizens.”
High property prices are also boosting the readiness to sell. With the current market value being one of the factors determining the pay-out under such schemes, senior citizens opting for property-based pension plans are benefiting from the healthy rise in sale prices seen in recent years. Customers can choose between a monthly pension, a one-time upfront payment, or a combination of both. “Many of our clients do indeed go for a combination of a one-off payment and regular pension. This allows them to pay off the remaining debt on their property and ensures security for a long retirement. The real estate pension contract with Deutsche Leibrenten AG, which is based on high social and ethical principles in accordance with ESG standards, also helps by relieving senior citizens from all the associated duties including property maintenance”, continues Mr. Thiele.
Deutsche Leibrenten AG is sticking to its growth plans and will in future offer even more people the opportunity to enjoy their retirement in the surroundings they have become fond of. "We are continuing this success story and are supporting an increasing number of customers," says Mr. Thiele. By using residential property as a basis for their pension, over-70s can release the value tied up in property but without having to leave the home they know and love. An essential part of this is their right of habitation, which is entered with priority status in the land register. And the monthly payment obligations are also secured by a land charge. “It all makes this the safest and best form of funding a retirement pension”, explains the head of Deutsche Leibrenten AG. Rather than selling the property to private buyers, Deutsche Leibrenten AG retains it and provides a contractual undertaking not to resell the property during the lifetime of the client, thus creating a long-term partnership.
About Deutsche Leibrenten Grundbesitz AG – www.deutsche-leibrenten.de
Deutsche Leibrenten Grundbesitz AG offers pensioners the option of selling their property without having to move out of their own home. Sellers have a life-long right of residence secured by usufruct law – all fully notarised and entered in the land register – under which, they will receive a monthly pension and/or a one-off payment. As the sole provider of this type of pension product, the Frankfurt-based company acquires properties throughout Germany, funded by its majority shareholder, Obotritia Capital KGaA based in Potsdam.
Deutsche Leibrenten currently owns more than 500 properties. This makes it Germany's leading provider of property-based pension schemes. It is Germany’s sole member of the European Pensions and Property Asset Release Group (EPPARG).
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