REVERSE ANNUITY MORTGAGE (VIAGER) 2023

REVERSE ANNUITY MORTGAGE (VIAGER) 2023

VIAGER PROPERTY REVERSE ANNUITY MORTGAGE (VIAGER) 2023 VIAGER SYSTEM DEFINITION HOW IT WORKS BOUQUET ADVANTAGE INCONVENIENT 2023

WHAT IS A REVERSE ANNUITY MORTGAGE (VIAGER) 2023? DEFINITION

A reverse annuity mortgage (Viager) in 2023 is by definition a real estate agreement where the buyer provides with down payment and a pension paid regularly to a seller of a property for the rest of his life with the right to still living there until the end of his or her life.

The reverse annuity mortgage is a form of real estate sale (in France essentially) where a generally elderly person decides to sell his or her house in return for a life annuity and down-payment (bouquet), before his or her death, possibly retaining (subject to clauses) the right to stay there.

The Viager system for a property is advantageous for the owner who wishes to take advantage of the value of his property while living there and this option is very useful for elderly people who do not have heirs or who wish to enjoy life without leaving property or values after their death.

A reverse annuity mortgage (Viager) in 2023, to be calculated must be based not only on the value spread over time but essentially on the number of years that the beneficiaries of this annuity will benefit it and this will be based on the probabilities of longevity calculated by the institution offering this financial service.

The Viager payment plan is in principle a good way to spread the value of your property or your savings over the rest of your life with the calculation of a pension which becomes a bet for both parties, everything will depend on the lifetime of the beneficiaries of the annuity.

The amount of the life annuity will therefore depend on the age of the person who has subscribed to this option, also called reverse financing, and which will be all the lower the younger the person is, since statistically they will live longer and vice versa if the person has already reached an advanced age.

Thus, life annuity is nothing but a form of payment for life which is made from a sum of money or real estate and will be distributed monthly for the benefit of a person for the rest of his or her life.

WHAT ARE THE ADVANTAGES, DISADVANTAGES, RISKS OF THE VIAGER (REVERSE ANNUITY MORTGAGE)?

The viager or reverse annuity mortgage, like any financial solution, has advantages but also disadvantages for both the property seller and the buyer.

Reverse equity mortgages or Viager are very random in the sense that they are speculative because they are based on probabilities and statistics of the length of the life of the seller.

Thus in the event that the seller dies as the statistics predict, both parties will be “winners” because the buyer recovers the property “on time” the property and will no longer pay rent and the seller will have benefited from the rent as planned.

If the seller lives longer than the calculated life expectancy, he will benefit not only from being still alive but also longer from an annuity which is negative for the buyer since he will continue to pay beyond what was planned.

In the event that the seller dies before the date provided for by the insurance statistics, the buyer will therefore pay less annuity than planned and the seller will not have fully benefited from this annuity.

If we can objectively decide between the advantages and disadvantages:

  • The advantages for the buyer are that he can acquire a property with a reduction on its true price which corresponds to the occupation of the premises of the seller who does not pay rent.
  • The advantages for the seller (without heir) is that he will receive money while occupying the premises until his death.
  • The disadvantages for a life annuity buyer is that the profitability of his transaction will depend on the life of the seller, the longer the latter lives, the more the buyer will pay in addition to any major maintenance work.
  • The disadvantages for the seller are that the sale is made at a lower price than the market price and in the event that he dies prematurely in the absence of reversibility of the annuity, the spouse will become the big loser.
  • This form of real estate acquisition and sale is very speculative since it is a bet taken by two parties, the buyer's wish being that the seller does not live too long while the buyer will hope to benefit the longest from his pension. Thus the life annuity offers rare possibilities of seeing both parties be win-win.

CAR LOAN    PERSONAL LOAN    WITHOUT COLLATERAL   PAYDAY LOAN    PAY OFF CREDIT CARD    DEBT CONSOLIDATION    FOR ENTREPRENEUR    FOR STUDENT    WITH NO JOB   AGAINST PROPERTY    AGAINST CAR    AGREEMENT TEMPLATE   PRIVATE MORTGAGE    WITH BAD CREDIT    WITHOUT CREDIT CHECK   WITHOUT BANK    FOR SENIOR CITIZEN    WITHOUT GUARANTEE    PRIVATE SCHOOL LOAN    FOR STARTUP    FOR FARMER    LOAN SCAM    WITHOUT INTEREST    PRIVATE MICROCREDIT    CASH DONATION    IMMEDIATE LOAN    HALAL PRIVATE LOAN    UNIVERSAL CREDIT   LOW INCOME    SSI RECIPIENT    FOR POOR PEOPLE    FOR DISABLED    FOR LATINO    FOR WOMEN    FOR HOUSEWIFE    WITHOUT DOCUMENT    FOR TRADER   WITHOUT SSN   PIGGYBACK LOAN    FOR MASTER'S DEGREE    FOR TAXI   WITH IBV   FOR DOWN PAYMENT    LIST OF PRIVATE LENDERS   FOR DIVORCE   NO UPFRONT FEE   WORLDWIDE LENDER   UNITED STATES    CANADA    AUSTRALIA   NEW-ZEALAND    UNITED-KINGDOM    INDIA   SOUTH-AFRICA    CHINA    JAPAN LENDER   PHILIPPINES   MEXICO    IRELAND    ISRAEL   DUBAI    SOUTH KOREA PRIVATE LENDING   PAKISTAN    FRANCE   SWITZERLAND    CAR ACCIDENT ATTORNEY   MOTORCYCLE ACCIDENT LAWYER   GERMANY    NETHERLANDS   NORWAY    SWEDEN    DENMARK   FINLAND    LATVIA    GREECE   KENYA    NIGERIA    THAILAND   SPAIN    ITALY    BRAZIL    RUSSIA    ISRAEL   EGYPT    CALIFORNIA   NEW YORK    SMALL LOANS   SMALL PERSONAL LOAN   MINI MORTGAGE   SMALL CAR LOAN   SMALL CONSOLIDATION   MINI-LEASING   INSTANT MINI-LOAN   SMALL BUDGETING LOAN   SMALL P2P LOAN   MINI CROWDFUNDING   POOR CREDIT SCORE    SMALL PAWN LOAN   FOR UNEMPLOYED   FOR START-UP   FOR BUSINESS   REVERSE ANNUITY MORTAGE   MINI LOAN STUDENT   WITHOUT DOCUMENT   NO CREDIT CHECK   NO BANK   LIST MICROCREDIT COMPANIES   ZERO INTEREST   NO PROOF OF INCOME   EMERGENCY   ONLINE   QUICK MINI LOAN   DEBT REVIEW LOAN   RENT DEPOSIT   MOBILE APP   MINI PAYDAY LOAN   FROM FRIENDS FAMILY   PRIVATE LOAN COMPANIES   LOAN WITH FAKE LENDERS   LIST OF PAYDAY LENDERS   LIST OF PAWNBROKERS   OVERSEAS MINI LOAN   GOVERNMENT LOAN   WITH DEBT COUNSELLING   LOAN WITH IVA   LOAN FROM STRANGER   COVID-19