The seller (the creditor) receives additional capital and income guaranteed for life.
At the time of sale, the payer of an allowance pays a cash amount called "BOUQUET", calculated based on the value of the property. Then, every month, the seller receives a monthly sum, called "ANNUITY", paid by the buyer who guarantees an additional income for life. The life annuity allows you to improve your daily life and enjoy your retirement more pleasantly.
Free value (FV)
Right of use and housing (DUH)
Bouquet
Annuity
The whole is calculated based on the life expectancy of the seller(s) and the rental value of the property.
The seller (the creditor) has a personal Right of Use and Housing (DUH) for life in the event of an occupied life annuity
If you choose to sell your property as an occupied life annuity, it allows you to continue to occupy it for as long as you wish without changing your lifestyle. Indeed, the creditor benefits from a "Right of Use and Housing", he continues to live "at home", without any change in his daily life, throughout his life
If the seller decides to release the property, only on his initiative, then the annuity is revalued at the rate provided for in the deed of sale. This allows him to face the new expenses incurred (senior residence...).
The seller (the creditor) makes significant savings
The seller no longer pays the property tax, major works (renovation, roofing, staircase) and the trustee's fees in the event of co-ownership. Only the housing tax, the tax on household waste and rental charges remain at its charge.
These burden-sharing depends on over-the-counter negotiations between buyer and seller.
The seller (the creditor) benefits from a specific tax framework
The bouquet is exempt from taxes (if it is the main residence).
on the other hand, the annuity is taxable despite a deduction:
Up to 49 years old:
30% tax allowance (only 70% to be declared of your annual pension)
From 50 years old to 59 years old included:
50% tax allowance (50% to be declared)
From 60 to 69 years old:
60% tax allowance (40% to be declared)
From the age of 70:
70% tax allowance (30% to be declared).
Besides, the registration and notary fees are the responsibility of the buyer-investor.
