Life annuity

Life annuity remains a viable solution to continue to live in our house or apartment where so many happy memories have been imprinted on the wall décor.

Medical assistants and home carers emphasise the wish of elderly people to delay being placed in a care home for elderly dependant adults.

Since the XIIIth century, life annuity has been the solution to sell with deferred payments between a buyer and a seller.

In the last two centuries, Life Annuity has become widely established in France.

The sale of life annuity is a contract between an owner, so the “seller” (annuitant) and the purchaser, so the “buyer” (annuitant’s beneficiary) which is reimbursed as a reverse mortgage.

The “buyer” engages to remunerate the “seller”;

• A monthly rent to the annuitant; the contract for life annuity payments is stipulated in the Article No. 1968 to 1983 of the Civil Code.

The amount of annuity income is indexed with the inflation rate “Consumer cost index” (CPI) in France; “Indice des prix à la consommation” (IPC) published by INSEE. However, the index measure is not defined solely by a floor price.

• As well as the monthly annuity income, a capital payment is remunerated on the day of the Authentic Sales Act, which is commonly known as the “Bouquet”.
• The Annuitant’s property may be either occupied, or unoccupied.
• The act of a life annuity property is above all, a real estate sale.

Meanwhile, the modalities of this sales act require technical knowledge and expertise.

The pre-contract is written by your agency Melyhome.

This category of the pre-contract is particularly precise; in addition to the appraisal of the real estate, the Bouquet and the annuity income, a reversibility clause and furthermore detailed rules to secure the rights of the annuitant and the annuitant’s beneficiary… requires exact information to be established.