Luxury life annuities and installment sales
in Paris and France – Exceptional properties

Sale of luxury properties through life annuities, bare ownership and installment sales – Paris & France

Enhancing the value of luxury real estate in a different way

Luxury real estate isn't just about high prices. Owners and investors seek flexibility, asset optimization, and legal security. Structures such as life annuities, bare ownership, and installment sales meet these needs while enhancing the value of exceptional properties in Paris and throughout France.

1. Life Annuity: Understanding the Basics

A life annuity is a type of sale where payment is partly made in the form of an annuity. There are two main forms: occupied and vacant.

1.1 Occupied life annuity

• Simple definition: The seller continues to live in the property after the sale. The buyer pays a lump sum (initial payment) plus a monthly annuity until the seller's death.

• Advantages for the seller: He keeps his home and receives additional income.

• Advantages for the buyer: The purchase price is reduced compared to full ownership.

Concrete example:

• Property value: €1,000,000

• Bouquet: €400,000

• Monthly annuity: €2,500

• Seller's age: 80 years

The buyer therefore pays €400,000 immediately and €2,500 per month. The property remains occupied by the seller until their death.

1.2 Freehold life annuity

• Simple definition: The property is available immediately upon signing. The buyer can live in it or rent it out immediately.

• Upfront payment and annuity: The seller may request a higher upfront payment, and the annuity may be low or zero.

• Advantages: The buyer benefits from immediate profitability (rent or personal use).

Concrete example:

• Property value: €1,200,000

• Bouquet: €800,000

• Amount: €1,500/month (or negotiable depending on the agreement)

• Seller's age: 75 years

Here, the buyer pays a significant sum upfront, but the property is vacant and can generate immediate rental income. The rent can be adjusted through negotiation.

2. Bare Ownership: Separating Use and Ownership

• Simple principle: The buyer buys the property, but the seller retains the usufruct (right to live in or collect rents).

• Advantages: Tax optimization and wealth transfer.

Concrete example:

• Total value of the property: €1,500,000

• Bare ownership value: €900,000

• Retained usufruct: €600,000

The buyer becomes the owner, but the seller continues to benefit from the property or the income generated.

3. Forward sale: Secure deferred payment

• Simple principle: The price of the good is paid in several installments over a defined period.

• Advantages: Secures income for the seller and facilitates access to luxury goods for the buyer.

Concrete example:

• Property value: €1,000,000

• Initial investment: €300,000

• Balance due: €700,000 over 10 years

The seller receives a guaranteed income over several years and the buyer can plan their payments.

4. List your property on Charming Properties

• 💎 Minimum bouquet size: 600 000 €

• 🌍 International visibility : the portal showcases prestigious properties for qualified buyers

• 🏛️ Expert support : wealth management advice and high-end expertise

The portal welcomes both professionals and certain individuals under certain conditions, in order to offer maximum flexibility and visibility.

5. Why these setups are interesting

• Tax optimization

• Securing income for the seller

• Property valuation and wealth management strategy

• Flexibility for both buyer and seller

6. Concise numerical examples