DUH (Right of Use and Habitation)
Right allowing the seller to personally occupy the home sold via life annuity until their death, without being able to let it.
Full definition
The Right of Use and Habitation (DUH) is a real right that allows its holder to occupy a home for their personal needs and those of their family, without the possibility of letting it to a third party.
The right of use and habitation is more restrictive than usufruct: the beneficiary may only live in the property, they cannot receive its rental income. This limitation explains why the right of use and habitation has a lower value than usufruct in the life annuity calculation, which increases the seller's annuity.
The right of use and habitation ends on the death of the beneficiary or if they permanently leave the home (moving into a care home, for example). In the latter case, some contracts provide for an increase in the annuity to offset the loss of the occupancy right. The right of use and habitation is the right most frequently chosen in occupied life annuities in Luxembourg.
Go further
Related terms
Occupied Life Annuity
Sale via life annuity where the seller retains the right to live in the property (right of use and habitation or usufruct) until their death.
Usufruct
Right to use a property and receive its income (rents) without owning it, more extensive than the right of use and habitation.
Bare Ownership
Ownership right of a property without the right to enjoy it or receive its income, held by the buyer in an occupied life annuity.
Occupancy Coefficient
Percentage discount applied to the market value according to the seller's age, to calculate the value of the occupancy right.
Need a life annuity expert?
Our advisers support you free of charge with your life annuity project in Luxembourg. Get a free estimate with no obligation.