Bare ownership sale

Focus on the “bare ownership” sale solution, the new life annuity trend!

This type of sale allows the seller to receive a significant immediate capital that is called the “bouquet”, paid in one lump sum – which can represent up to 80% of the market value of the property – while retaining the right to dispose of the premises for the rest of his or her life or to rent out his or her apartment, depending on the contract chosen. The seller can thus continue to live at home without changing his habits and benefit from a capital received in full when the notarial deed is signed.

In which case can the sale in bare ownership be interesting for you?

  • I have no children…

Nothing changes in my daily life and yet everything changes, you touch a capital to make new projects and thus fully enjoy life.

  • I don’t want to be a burden to my children…

I am securing a capital sum to take care of my future dependence and to have the means to stay at home so that my children do not have to bear the burden.

  • I have already given the bare ownership to my children…

You keep the usufruct, your children have the possibility to sell the bare ownership and thus benefit from a capital that will help them in life without anything changing for you.

  • I want to help my children and grandchildren…

The funds available immediately allow you to help them when they need it.

  • I am a homeowner but still in debt…

The sale of your bare ownership gives you the opportunity to repay your loan and to pay yourself a capital. This increases your purchasing power and gives you extra cash for new projects.

  • I am a landlord and want to keep my rental income…

You can sell the bare ownership of your property and thus reduce your IFI taxation. You receive a capital and you keep the usufruct and the associated rental income until the end of your life.

Do you want to monetize your bare ownership of real estate received as a gift or inheritance?

For all persons who have received the bare ownership of a property by inheritance or donation, it is now possible to sell this bare ownership and transform it into immediate liquid capital.

Within the framework of a donation :
The bare ownership donation allows to pass on an estate while limiting the amount of inheritance tax. The donated property belongs to the bare owner (the donee) while the usufructuary (the donor) has the right to occupy it and to receive the rents if the property is rented.
Consultants Immobilier will be able to accompany you in the transformation of this bare ownership into immediate liquidity. The usufructuary (the donor) will continue to live in his home without changing his habits.

Within the framework of an inheritance:
This can be a very interesting solution, especially in the case of a surviving spouse, in order to facilitate the settlement of the estate by selling the bare ownership, thus leaving the spouse in the premises, and freeing the heirs from any financial constraints.
Indeed, the heirs sometimes find themselves with a property for which they have to pay duties, and mobilize money that they do not necessarily have at the time.

David Chouraki MANAGER
54 Rue Jouffroy d’Abbans - 75017 Paris 07 83 75 55 01
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Interview – David Chouraki, life annuity specialist

A new wind is blowing on the life annuity sector! The seller of a property who wishes to stay in his home and receive an immediate capital in order to realize an immediate project or to transmit his patrimony by anticipation can take advantage of this (very) advantageous alternative. Explanations by David Chouraki, Viager Manager at Consultant immobilier.

Life annuity, how does it work?

David Chouraki : In a classic life sale, the seller of a property receives additional income for life called the “life annuity”. This annuity is paid by the buyer to the seller, monthly, quarterly or annually. The amount of the annuity is defined according to criteria such as the age and life expectancy of the seller, the value of the property, or the estimated rental value of the property for sale.

On the day of the sale, the seller receives approximately 30% of the total amount of the sale called the bouquet. The balance of the sale amount will be paid as a life annuity.

Even if this solution seems attractive, insofar as it allows the seller to obtain both an immediate capital, and in addition, a complementary income, it has however an important disadvantage: the total value of the life annuity is uncertain, because it depends on the life span of the seller. A much more satisfactory alternative can be considered for the seller: zoom on the sale in bare ownership.

Selling bare ownership: instructions for use

David Chouraki : Contrary to the classic life sale mentioned previously and on which there is uncertainty as to the amount of its total value, the sale in “bare ownership” puts all the cards on the table: each of the parties knows in advance what the total amount of the transaction is, the bouquet being the only capital to be paid on the day of the notarial act. For example, a seller of a property (ideally over seventy years of age to avoid a significant discount) will be able to claim, on the day of the sale, up to 80% of the market value of the property. This formula will allow him/her to remain in his/her home and thus maintain his/her lifestyle. Better still, thanks to the large capital obtained immediately and in one go, the seller will be able to improve the quality of his daily life, to fit out his apartment with work to adapt it to the ageing process, to carry out personal projects, to buy a second home or to help his relatives or to reorganize his inheritance in advance.

What are the other bonuses of this operation?

David Chouraki : This formula has advantages for both parties to the sale. For the sellers, this operation allows a serious reduction of the IFI insofar as the basis of calculation of the aforementioned tax will be 30% of the market value from the age of 70, then 20% from the age of 80. For the buyers, the sale in bare ownership allows them to build up an estate by acquiring a property at an attractive price, and with the help of bank financing. Finally, a win-win formula for both parties.