Used like a lifetime mortgage in the UK but a French version.
Not really like a lifetime mortgage because you no longer own the property.
Viager can be a very good deal for the seller. The problem is finding a buyer.
I read a few years back, someone thought they’d got a “great deal” Buying by Viager except that the Seller lived much longer than expected (reached her 100 yrs birthday I think) which made the transaction much, much more expensive for the Buyer 
Jeanne Calment sold her house by viager in 1965, aged 90. She then went on to live until she was 122 and her buyer died before taking possession.
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well done, we’ve obviously read the same papers, or did you Google it
It lodged itself in my memory years ago but I had to Google for the precise numbers. I think we covered it in a French class many, many years ago.
Not recommended under 70 as you get very little rent and have to pay tax on it. After 70 you only pay tax on 30%.
Friend started process nut it was stopped by notaire as she was then diagnosed with a terminal cancer.
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A bit iffy in all senses unless you don’t really need to live in the property and its only for investment purposes but may attract a lot of IHT eventually should you die before the current inhabitant.
I believe the “bouquet” is tax free though?
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I think that is not correct Shiba, you dont own the property any longer but retain the right to live in it until death or going into care. You cannot be forced out. Taxes are just what they are at the time, governments come and go.
I thought Shiba meant, iffy for the buyer.
But then most investments are potentially iffy.
It’s a calculated risk…
Thinking at the moment of the UK home, running through several ideas for later on. The lifetime mortgage favours the greedy bankers as usual. They under value your home, only release a poor LTV amount, they also charge a higher interest rate than a normal mortgage/secured loan. With no dependants we thought a similar viager contract could be drawn up and the eventual property could go to a chosen charity rather than a greedy banker, with fairer terms for us.
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Not sure what you are saying.
Do you mean in France?
I can’t see a charity buying property en viager. I do not think it would be a justifiable or responsible use of charity funds.
I think I have misunderstood your plan.
No a similar contract for use in the UK.
Its quite profitable for banks etc hence to drive to push them, A charity could do quite well financially out of such a contract. A person in the UK did something similar with a private buyer, the first of its kind apparently, trying to find more information on it. I just thought I would prefer the final proceeds of the house to go to our chosen charity.
surely for the Charity to profit from its Sale, the Charity would have to have been paying the mortgage/whatever until you (named in the contract) died. ???
I like the idea of Charity/Good-Cause gaining… just not sure how to ensure it actually happens.
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Yes Shiba, the charity would be releasing the money from its funds. Suitable probably for larger charities, dont forget many of these have vast funds invested, not always hand to mouth organisations. If it were not profitable bankers wouldnt do it. Now the UK has decided pensions are going to be added to IHT liability these type of setups could become more useful for lowering IHT and increasing pension income whilst still alive.
Yes for the buyer NOT the person living in the property when a viager starts. I did say inhabitant
But purchasing en viager can result in the purchase making a loss. As the famous Calment case illustrates but I imagine not a few purchasers do not, or barely, break even. Bouquet, rentes, property taxes over the years, maintenance costs. In effect you are taking a gamble on the seller dying quite soon after the sale. Would it not be simpler to bequeathe the house to your cchosen charity in your will?
All points accepted, all investments are meant to contain an element of risk. Yes bequeathing is fine but I would also like to access some of the equity in order to enjoy rather than endure retirement. Just looking at possible options. I repeat, banks would be pushing lifetime mortgages if all things considered they were not profitable.
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I have no doubt lifetime mortgages are profitable but I do not suppose charities can legally act as financial institutons and offer those. Investors’ appetite for en viager purchases is limited. Would-be sellers far exceed buyers. If it was seen by investors as an attractive investment surely this would not be the case. It is a gamble, and I think sometimes it has a philanthopic element.
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