ESSENTIAL ON PURCHASE IN LIFE
The life: it is a form of real estate sale where the owner chooses to sell his property in return for a guaranteed life annuity and the payment of a capital, called bouquet.
The bouquet: it is a starting capital paid to the seller, the amount of which is determined in agreement between the two parties, according to the value of the good. It is not obligatory.
The annuity: it is a sum of money that the purchaser pays to the seller, until the death of this one.
The calculation of the rent: it is not easy to perform since it takes into account several parameters; the age and sex of the seller, if it is a single person or a couple, the estimation of the value of the good, the amount of the bouquet, the existence of a right of use and dwelling.
The life annuity occupies: it represents the vast majority of sales, about 95%. The seller has a right of habitation and use that allows him to live in his home until the end of his life or his eventual departure into a retirement home.
The free life: it offers the opportunity to the buyer to settle in the property he has just acquired or rent.
Term sales: this corresponds to the sale of real estate property or the purchaser pays cash and monthly installments over a defined period (the payment is limited in time). The seller may, in the context of a busy sale, reserve a Right of Use and Housing (DUH).
The final cost: The final price depends on the duration of payment of the annuity related to the longevity of the beneficiary. If he dies at the estimated deadline, the amount of the purchase corresponds to the price of the accommodation. If he dies before the buyer is a beneficiary. The annuity is revalued each year according to the cost of living.
OPPORTUNITIES OF LIFE
Leaseback can provide a solution for seniors to earn additional income at a time when pensions are falling steadily.
BENEFITS FOR BUYER
Buying a life lease is tantamount to owning a home without paying the full selling price, but paying it in the form of a rent paid to the seller until death. In this way, the purchaser can build up real estate assets in anticipation of his own retirement. In general, the purchase of a busy life annuity will be 30% cheaper than a classic real estate purchase.
ADVANTAGES FOR THE SELLER
He can stay in his home while receiving regular income enjoying a very favorable tax.
WHO PAYS WHAT?
When the housing is occupied, the two parties share the costs: the buyer is liable for the property tax, major repairs and, the seller pays the housing tax, rental charges, fees of the trustee and insurance .
WHERE DOES THE SALE CONCLUDE?
The transaction takes place before the notary and is the subject of an authentic deed giving the property to the buyer who will pay the notarial fees and transfer duties. The contract specifies the amount of the bouquet and the rent as well as all the modalities.
Custom study on request
Expert life calculations
Legal and tax advice