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Viager - has anyone ever bought a place on this basis


sueyh

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ErnieY: a viager is a way a buying/selling property.

If an elderly person has a property and needs money, he/she could sell the property in exchange for a lump sum plus a set monthly amount and the right to live in it to the end of his/her days .

The monthly sum must be paid as long as the elderly person lives...

Jeanne Calment, the French oldest woman in the world a few years ago, sold her property "en viager" at the age of 90 in 1965.

Her buyer died in 1995. She died in 1997.

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It's a good way of disinheriting your wayward descendents, too!   If you sell the house before you die, you can go on living in it - but they will not get a penny after you go!

Sueyh, you do not say if you are looking to buy, or sell?

If the latter, there is French information about it here.

If the former - yes I have friends who have bought by this system.   They were already resident in a permanent house, but bought their first property "en viager" which was a much larger property. 
I think you buy for a much lower price than you would on the normal market, but you have to pay a "pension" (caluculated according to the vendor's age, life expectancy and state of health) to the old person while they live in "your" house.   If they have to move into an old-folks' home, your "pension" payments to the person actually go up, because from then on you are deemed either to be having enjoyment of the house yourself, or being able to let it for income.

It's a gamble of course, because you have no idea how long the elderly person will survive (see Jeanne Calmet story, above!)   In my friends' case, the old lady actually died after a year or two; they felt racked with guilt, rather than triumphant, I have to say.   But the old lady's nephew - who thought he was going to inherit until that point - was well p***ed off...
They used to call and see the old lady, take her flowers, birthday present, that sort of thing.   But I don't think you are obliged to have much contact with the person.

Angela

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