The first phase is the orientation phase of your reversionary property investment in France. You should be clear about what you are looking for: what region(s) you find attractive; whether you would like to own an apartment, a house, a chalet or a villa; and you should establish your budget: how much you would be able to spend on the lump sum and what monthly reversionary annuities you would be able to keep up.
Then start looking for a property that fits the profile you have established during the orientation phase. Because French viagers have a high discount, they usually do not remain on the market for a long time. If you see something you are interested in, you should respond quite quickly to show your interest so that it will not be taken by someone else. Especially untenanted home reversions and French home reversion schemes that have reversionary annuities for a limited period are usually very quickly off the market.
If the property turns out to be your French reversionary investment, then you should arrange for the contract to be signed. Initially, a simple contract is usually signed as a kind of promises to sign the final contract later. The final contract should be signed at a notary’s office. This contract will then also be listed and published at the mortgage registry. If the ‘lump sum and monthly annuity’ or the ‘single lump sum’ payment structure has been chosen, then the lump sum should have been received by the vendor before or on the day the contract is signed. On the day the final contract is signed, the buyer becomes the legal owner of the property. From that day onwards, the buyer can decide to sell the property without having to ask permission of the vendor of the French viager.
In some cases the contract is not valid:
- If the vendor passes away within 20 days of signing the final contract. This should be as a result of a disease not yet identified before the final contract was signed.
- The price is insufficient and does not reflect the real value of the reversionary property.
- The monthly annuity is significantly lower than the rent and income from the French viager.
- If the buyer knows that the vendor has a terminal illness and thus the aspect of risk disappears (which forms a part of the French home reversion scheme). In this case the monthly reversionary annuities will have to be paid to descendant of the vendor.
- If the property has been bought by someone who has been declared bankrupt.
