Bouquet
Capital sum paid to the seller on the day the deed of sale via life annuity is signed, generally between 20% and 40% of the property's value.
Full definition
The bouquet is the sum of money paid in cash to the seller (annuitant) when the authentic deed of sale via life annuity is signed. It generally represents between 20% and 40% of the property's market value, depending on the negotiations between the parties.
The amount of the bouquet is freely agreed between the seller and the buyer. A higher bouquet results in a lower monthly annuity, and vice versa. Some life annuities can even be concluded without a bouquet ("life annuity without bouquet"), in which case the annuity will be higher.
For the seller, the bouquet provides immediate access to a capital sum to carry out projects, meet major expenses or help loved ones. For the buyer, paying a substantial bouquet reduces the financial risk linked to the duration of the annuity payments. The bouquet is not subject to income tax for the seller.
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Related terms
Life Annuity (the pension)
Sum paid periodically (monthly or quarterly) to the seller until their death, calculated according to the value of the property and life expectancy.
Life Annuity
Property sale where payment is made in the form of an annuity paid to the seller until their death, with or without an initial bouquet.
Market Value
Market price of a property if it were sold free of any occupancy, the basis for calculating the life annuity.
Occupied Value
Value of the property in an occupied life annuity after deduction of the occupancy right (right of use and habitation or usufruct), the basis for calculating the bouquet and annuity.
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