THE STAGE PAYMENTS FOR HOME REVERSIONS

There are three different payment structures to acquire your reversionary property in France:


1. Lump sum plus a monthly annuity:
This is the most common French home reversion investment plan. The discounted value is divided over the lump sum and the reversionary annuities (which are monthly payments to fund your reversionary property investment in France). Usually 10% to 30% of the total amount which you have to pay, the discounted value of the reversion, will be paid as a lump sum when the contract is signed. Based on the life expectancy of the vendor, the remaining amount is divided in monthly instalments. When you buy a property under the French home reversion scheme, you will have to continue paying these monthly reversionary annuities for the remainder of the vendor’s life.

Sometimes the reversionary annuities can be limited to a certain period of time instead of being for life. If you sign this kind of reversionary investment agreement, you will only have to pay the monthly annuities for a certain amount of years. If the vendor passes way before this term ends, the reversionary annuities will then have to be paid to the vendor’s heirs.

The lump sum plus monthly annuity option for a fixed period is a very attractive option and usually does not stay on the market for a long time.


2. A single lump sum:
These kind of French home reversion investment deals only come up once in a while and they are in high demand as you know exactly how much your investment will be, just like the first option with a monthly reversionary annuity for a fixed period. You pay the single lump sum when you sign the contract for your French viager.


3. Monthly annuities:
This home reversion plan option is perfect for those that do not wish to pay a huge sum of money at once but would still like to invest in a property in France at a discounted price. Just like option one, the annuities can be for life or a fixed term.