Buying a home en viager

ONE method of buying a property in France is en viager, which sees the purchaser agree to pay a monthly charge whilst the owner lives in the house.

But the twist is that when the owner dies then ownership transfers to the person who has been making the payments, of course this should be seen as a long-term investment.

Whilst many would turn their noses up at such a plan considering it distasteful, there are clear advantages on both sides.

For the purchaser they will have agreed a price, have reliable ‘tenants’ in the home taking care of it and when ownership is transferred could hold on to the house or sell.

Whilst the current occupiers have any fears over the amount of money coming into the house lifted, and as most en viager deals involve an initial payment they also enjoy some cash upfront.

The occupier will have to meet any service charges but major works will become the responsibility of the purchaser.

For an example of house sales which are being offered en viager take a look at the Ligasse Viager website.

You will see that alongside the standard description of a property there is mention of the age of the current owners and the deal they are willing to accept.

Buying a property in such a way is more of an investment, especially as many properties offered are apartments, and it is important that all the terms are understood.

It is a small market, there are only around 4,000 sales a year, with most being found in larger cities.

Comments

[Guillaume Barlet]

This article should mention that there are different types of vente en viager and that the tax side should always be considered.
Indeed, the buyer in such a transaction is still liable for stamp duty and other purchase fees. There is no tax advantage and you cannot deduct the annuity paid against you tax balance.

Depending on the type of vente en viager you can still be liable for local taxes.

The vente en viager is a gambler experience insofar as it relies on the vendor's death which, (hopefully) cannot be predicted.

[Craig McGinty]

Hi Guillaume

Many thanks for expanding further on the article, I am sure readers will appreciate your advice and experience.

Regards

Craig

[mike Kavanagh]

How do I go about putting my house for sale on the viager system?

Thank you

m.kavanagh

[Guillaume Barlet]

Dear Mike,

The first contract for a viager is a private agreement and can be drafted by a lawyer or a viager specialist (some estate agents specialise in such market). Like a regular sale, the registration at the Land regitry on completion must be carried out by a notaire.

I hope this helps.

[David]

I still don't understand the stamp duty payable on the purchase. Is it on the market value (who values it) or on the payments made (lump sum and pension)??
I tried to ask the estate agents in Paris but I cant explain just how rude their service is. Can you recommend a lawyer also please?