The life annuity against a mortgage guarantee becomes accessible from age 60. This banking operation makes it possible to finance the personal projects of the seniors.
The life annuity, an interesting solution for sale and sometimes for the buyer
Popularized by the cinema in the 1970s, the sale in life is a real estate transaction that allows an owner to sell a property while remaining the occupant of the premises. In return, the buyer must regularly pay him an annuity. He will have paid an initial amount called the bouquet.
For the seller, the sale in life has the advantage of providing additional income in addition to the bouquet received.
For its part, the buyer hopes that the amount of rents paid cumulative to that of the bouquet will allow him to carry out an interesting financial transaction. Indeed, if the death of the seller occurs relatively early, the purchaser will not have to pay as many rents as in the case of an occupation situation that would drag on. This “gamble on death” has long given the sale life a morbid image of operation and thus poorly perceived. Nevertheless, thousands of French people make the choice to sell their property life annuity in order to supplement their income.
The mortgage life loan from age 60
In 2006, another form of life was born: the mortgage life loan. With this type of credit, the owner of a home can borrow money from a bank in return for a guarantee on his property. Last year, the borrowed capital averaged 100,000 euros. Mortgage life credit has become democratized because of the longer life expectancy of the French as well as their growing need for support. To cover this home care and other personal projects, seniors use this type of financing. During the term of the contract, they will not pay any monthly repayment.
The mortgage life loan will end with the death of the borrower (or after a prepayment or with the sale of the property). Two solutions will be proposed to his heirs, if they exist, to cover the borrowed capital and its interests: sell the property put in guarantee or refund themselves the credit subscribed by the deceased.
Reserved for senior borrower profiles, the mortgage loan is now offered from the age of 60 by a banking institution. Like existing offers, the latter does not require any health questionnaire.