location vente sans apport?

[Debra]

I've had an email from someone asking if I would be interested on

selling my property on 'location vente sans apport'.  Does anyone know

anything about this?  Is it better or worse than the 'Credit vendeur

total sans bouquet' option I've heard of?

[NormanH]

They sound very similar, except that location vente suggests a sort of rent while purchasing the rent going towards the sale price at after a certain time , whereas in the second you simply lend the total purchase price to the buyer who then pays you back in installments.

In both cases the buyer wouldn't have to put down anything up front so I'd be wary.

I have no personal experience of either, though I did consider buying en viager a while back, which is different again of course.

[ventodue]

With Norman on this one, Debra.  Unless you're very desperate to sell, I'd keep well, well clear.

Basically it involves someone paying you the equivalent of a monthly rent plus a little bit of capital towards the purchase price.  At the end of the contract term, they then pay you a lump sum for whatever is left of the purchase price.

And who would be attracted by such a scheme?  Well, people who can't raise a bank mortgage and who haven't saved up enough money for a house deposit, of course.  So, what chance their ability to fulfill their part of the bargain?  Pretty slim, in my estimation.  It might work between family members - father/mother with big family house, children trying to make a go of things, that kind of situation.  But between strangers?  NO ........

EDIT:  And another thing :

And during all this time, who's responsible for maintaining the building, keeping it watertight etc?  Well, you, of course - you're the owner [+o(].  And what happens when, at the end of the contract, they refuse to pay over the rest of the capital?  You're stuffed, cent pour cent ...

"Run, Debra - RUN!" [:D]

[Debra]

Isn't it just the same as a normal rental then, except that they've an option to purchase it at an agreed price at the end of an agreed term and in the meanwhile, they're responsible for all internal repairs and also the tax fonciere?  If I let it to someone I'm still responsible for everything, not just the roof and shell of the building.

With a vente a term, I think I'd be liable for plus value tax immediately, which isn't much use if they don't pay a deposit (it's not my principal home).  With this, I wouldn't be liable for that until they actually bought it, and then they'd be paying the cash over (assuming they could get a loan and did buy it) so the plus value tax would come out of that.  If they don't buy it or fail to pay the monthly fees/rent, they have to move out and return the property in the condition it was rented in.  Isn't this just the same as a normal letting too?

[idun]

Get good legal advice about this. Go and see at least a couple of

notaires, I'd drive to see them too, one in a big city and one in a big town  and see what they say about it all. (I have done this once and got conflicting advice and checked with a third). You really do not being

tied into something that could get complicated in the future.

I

would also ask what would happen if one of you died during this 'rental'

period too. These things happen and you need to cover every aspect

before you sign up to anything.

You would also need to know who is really responsible for maintaining the property  and  the taxe foncieres. And what would

happen if they could not longer pay rent.

[woolybanana]

Debra, it sounds to me as if you would get neither beurre nor l'argent du beurre in this deal. You would be better off renting a cot for one of your kids which was the original problem, I think.

[Debra]

This is the house I bought to move to but can't because my kids all want to stay in the department we're in now for lycee.  That means it will be empty for three years and I'm a bit worried about the huge garden turning into a forest.  I was considering letting it anyway but put it up for sale to see if there was any chance of selling it - then got this request.  I could use the money from a sale to move where I want to be (near one of their lycees) and then let the house I'm currently living in.  Rental income would be a help if it doesn't sell, though.  I may even be able to let the one I'm in and then use both to rent somewhere else myself....(probably wouldn't though as I'd be worried that if one of the tenants didn't pay, I wouldn't be able to pay either).  Just exploring options.