What is a Vente En Viager in France and How Does It Work?

My elderly father has been living in France for the past 30 years; he is now 80 years old, and with the cost of living, his UK state pension is no longer sufficient to allow him to live decently and pay for his food, utility bills, and caring costs. He owns a pretty house in a sought-after area, and someone has suggested a “vente en viager” to raise much-needed funds for him. Can you tell me about such a thing?

The viager system is a unique French way of buying and selling property that is based on the seller’s life expectancy. It allows elderly homeowners, often with limited income, to release equity from their homes while continuing to live in them; it works as follows:

• • The buyer pays the seller an initial lump sum (called a “bouquet”), usually about 30% of the property’s value.
  • The buyer then pays the seller a regular lifetime rent (rente viagère), monthly or quarterly.
  • The seller keeps the right to live in the property for life (viager occupé, meaning that the seller lives in the home until their death, with lifetime usage rights), or in some cases, the property is vacant from the start (viager libre, meaning that the seller leaves immediately, and the buyer can use the property while continuing to pay the lifetime rent.)
  • Sales can be arranged for one person or jointly for couples (viager sur deux têtes).

However, it is worth bearing in mind the following risks:

• • For buyers: If the seller lives much longer than expected, the buyer may end up paying more than the property’s value.
  • For sellers: They gain financial security, but if they die earlier than expected, they (and their heirs) may receive less overall benefit.
  • There may be some extreme cases, such as Jeanne Calment (who lived to 122 and outlived her viager buyer), but these are very rare.
  • Rights may be limited to personal use (droit d’usage et d’habitation) or extend to renting the property out (usufruit).
  • The seller’s death must be unpredictable – if the buyer knew of a serious illness, the sale could be annulled.
  • If the seller dies within 20 days of the sale, heirs can request cancellation.

In summary, viager sales offer elderly homeowners a way to gain income while keeping their home, and give buyers the chance of a bargain—though with significant uncertainty, since the outcome depends on how long the seller lives.