THE ADVANTAGES OF THE FRENCH REVERSIONARY SCHEME FOR THE BUYER

The main advantage of the French reversionary scheme is the discount you receive when investing in a French home reversion. This discount can be up to 50% of the market valuation price of the French viager. As most of the French home reversion plans are for life, this means that you have to carry on paying the monthly reversionary annuities until the vendor passes away, it remains a bet on the life expectancy of the vendor. As a buyer you can take out an insurance policy in order to limit the ‘excess’ of life expectancy of the vendor.

Another interesting aspect is the location of the French home reversions as this is often a prime area such as Côte d’Azur and Île-de-France (the region surrounding Paris). As most of the reversionary properties were initially bought as a retirement home, they are often located in the country side, near the sea or in a major city. Some French viagers are very luxurious and have several facilities such as a tennis court and a swimming pool.

The French reversionary scheme is a good solution for those that would like to have a holiday home at their disposal when they retire. Furthermore, the property will be taken good care of by the vendor, who carries on living in the property till he or she passes away, since the vendor considers it to be his or her home. Moreover, the vendor has certain obligations: he or she has to pay the service charges, council tax and maintenance. However, the vendor can not rent your reversionary property investment out to other people.

Sometimes French reversionary property investments are vacant: then you have the right to use the premises or you can let them. Additionally you have the right to sell your reversionary property investment whenever you want.