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.
Full definition
The occupied value is the value of a property sold via an occupied life annuity, obtained after deducting the value of the occupancy right (right of use and habitation or usufruct) from the market value. It is on this basis that the bouquet and the annuity are calculated.
The calculation is done as follows: Occupied value = Market value - Value of the occupancy right. The value of the occupancy right depends on the seller's age (the younger they are, the larger the discount, as the occupancy will potentially be longer) and on the type of right (usufruct or right of use and habitation).
For example, for a property of 500 000€ with a 75-year-old seller and an occupancy coefficient of 40%, the occupied value will be 300 000€ (500 000€ - 200 000€). This occupied value will then be split between the bouquet and the life annuity according to the parties' wishes.
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Related terms
Market Value
Market price of a property if it were sold free of any occupancy, the basis for calculating the 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.
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.
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.
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