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.
Full definition
The occupied life annuity is the most common form of sale via life annuity. The seller (annuitant) transfers the bare ownership of their property while retaining the right to live there through the Right of Use and Habitation (DUH) or usufruct.
This arrangement allows the seller to continue living in their home while receiving a capital sum (bouquet) and a lifelong monthly annuity. For the buyer, this means a substantial discount on the purchase price, corresponding to the value of the occupancy right.
The occupied life annuity represents around 90% of life annuity transactions in Luxembourg. It is particularly suited to senior homeowners who wish to remain in their familiar surroundings while securing their finances. The annuity is generally lower than with a vacant life annuity, offset by the right to remain in the property.
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Related terms
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.
Vacant Life Annuity
Sale via life annuity where the buyer can occupy or let the property immediately after the purchase.
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.
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.
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