French Life Annuity (Viager) Property Investments?
- Introduction to Life Annuity (Viager) Property
- How Viager Property Works
- Financial and Tax Implications of Viager Property
2. How Viager Property Works
These properties are often placed on the market by specialist agents, or less commonly by private sellers.
The capital sum is ultimately a negotiable amount, but the figure is normally derived from the intrinsic open market value of the property, discounted by the age of the owner based on actuarial figures.
The level of the annuity is correlated in relation to the size of the bouquet; the smaller the bouquet, the larger the monthly annuity, and vice versa.
There are cases of the French law courts overturning viager contracts if they consider that the prices paid is not reasonable, so you need to take professional advice on such contracts.
It is standard practice to link the annuity to the retail price index, although this is a point of negotiaton.