Difficulties in accessing mortgage mortgage, scandals in nursing homes, concerns about future pensions: the context is, in several respects, conducive to the development of the life annuity.
By Ludovic Clerima
It is a niche market that could become a future market. The life annuity currently seems to draw the attention of investors and sellers. A leader in this niche, Renée Costes Viger is estimated that the annual number of transactions carried out on this market, all actors combined, has doubled since 2018 (from around 5,000 to some 10,000 today).
“Since the scandal denounced in 2022 on the operation of EHPAD [Accommodation establishments for dependent elderly people] Orpea and Korian, there is a clear renewed interest in this type of project, especially among sellers of 75 At 80, who are the heart of the target of the market, “notes Vincent Gibelin, founder of the Universe Viage.
The difficulties of access to mortgage, linked in particular to the rise in loans rates, made the life annuity also attractive for buyers, since this type of transaction makes it possible to buy the accommodation without having to pay the entire price on the day of acquisition.
In the classic diagram, the buyer pays to the seller, on the day of the sale, a sum called “bouquet”, supplemented each month of a life annuity (its amount depends, among other things, on hope of the seller’s life). The more the seller wants a high annuity, the lower the bouquet and vice versa. Neither the bouquet nor the life annuity are however compulsory. In the case of a “occupied life annuity”, the buyer cannot live or rent it right away, it is only possible in the case of a “free life”.
Complete his retirement pension
“For example, for a property worth 300,000 euros occupied by a 74 -year -old woman, the investor will be able to pay a bouquet of 40,000 euros associated with an annuity of 600 euros per month”, illustrates Vincent Gibelin. The property will therefore be paid for around 150,000 euros if the saleswoman lives around fifteen years, her life expectancy, he specifies. It will be more if it lives longer, less conversely.
Please note, if the seller dies within twenty days of the signing of the act of sale, the law considers that the event was predictable and that the transaction is not valid. The cancellation of the life annuity can then be requested by the heirs of the occupant of the housing in court.
This type of transaction is over will. The buyer and the seller agree on the formula. Renée Costes Viager estimates that, on this market, 40 % of transactions are carried out in Île-de-France, 90 % are made of occupied life and 56 % concern houses.
You have 59.71% of this article to read. The rest is reserved for subscribers.