The purchase of real estate life annuity differs in its legal form from a traditional acquisition by its method of payment and by a deferred transfer of ownership of the property.
The seller, also called the annuitant, sells his property to a buyer (the debirtenant) who will not have full ownership until the seller dies . However, the purchase in life follows the same conditions as the classic real estate sale, first with the signing of a compromise and the drafting of an authentic deed at the time of the transfer of the property.
Reminder of the dismemberment of property
To fully understand the principle of operation, it should be known that the right of ownership is composed on the one hand of the usufruct which allows to enjoy the good (to occupy it) and the bare ownership which authorizes the alienation ( sell it). The two rights together compose what is called full ownership .
Buying a house or an apartment unoccupied
The free life annuity purchase of a house or an apartment makes it possible to dispose of the property either by occupying it yourself or by putting it at the disposal of a tenant. The buyer must however pay all the property taxes related to housing (property tax and housing tax).
Buying a occupied home
This is the most common situation. The seller continues to occupy his dwelling until the end of his days.
The selling price is composed first of all of the bouquet . It is a capital initially paid to the annuitant. If the price is set freely, know that there is however a correlation between the amount of the bouquet and that of the annuity. Clearly the lower the amount, the higher the amount of the annuity.
The life annuity
She is paid for life to the annuitant. It depends on many criteria, including the age of the seller. The older he is, the higher the amount of the pension. Other criteria are involved in the overall price (bouquet + rent) and the estimated value of the property.
At the request of the seller, some annuities can be indexed to follow the cost of living. This indexation may follow certain indices (consumer price, construction cost) or be fixed by the seller.
When the sellers are in a couple, the life annuity can be paid on one head or be reversible all or part to the surviving spouse at the death of the beneficiary.
Taxation of life annuities
Taxation is the same as income and pensions. The base depends directly on the age of the annuitant. For a couple the tax is based on the oldest taxpayer.
Schedule of life annuities.
- 70% if the annuitant is under 50 years of age
- 50% if age 50 to 59 inclusive
- 40% if age 60 to 69 inclusive
- 30% if he is over 69 years old.
Attention : the rate which determines the taxable part is fixed at the payment of the first pension and will remain identical until the death. Thus, if the beneficiary receives his first life annuity at the age of 52, he will be taxed on 50% of the annuity until the end of his life.
Announcements of life: a limited offer
The principle to search for an apartment or a house in life is identical to a classic acquisition. Be aware, however, that people who want to put their home life often use a notary, because it is often an estate approach that requires sound advice. The latter has a file of goods for sale that potential buyers can consult.
Some agencies specializing in real estate sales in life offer targeted ads. In addition, the advertisements of life on the Côte d’Azur (Nice, Cannes …) or Paris are the most abundant offer.
However, if the objective of a real estate purchase in life is to obtain a good return, it is better to extend the scope of its research to the whole of France.