Selling Your Home as Bare Ownership
The sale of bare ownership lets you transfer your property while keeping the usufruct (the right to live in it or rent it out). Unlike the life annuity, you receive a large capital sum immediately with no monthly annuity.
How to Sell Bare Ownership?
Property valuation
An expert assesses the market value of your property on the open market.
Bare ownership calculation
Based on your age, the tax scale determines the bare ownership share (e.g. 70% at 75 years).
Finding a buyer
Private investors, SCPIs or institutional buyers interested in this type of acquisition.
Negotiating the terms
Allocation of charges, works, occupancy or rental conditions.
Notarial signing
Authentic deed with registration of the usufruct in the Luxembourg land registry.
Bare Ownership vs Life Annuity: Comparison
Which solution best suits your situation?
| Criterion | Sale of Bare Ownership | Occupied Life Annuity |
|---|---|---|
| Immediate capital | High (60-80% of value) | Low (20-40% of value) |
| Monthly income | None | Lifelong annuity |
| Buyer risk | Low | Medium (lifespan) |
| Possibility to rent out | Yes (usufruct) | No (right of use and habitation) |
| Taxation | Standard capital gain | Annuity partially exempt |
| Ideal profile | Need for capital | Need for income |
Choose bare ownership if...
- ✓You need a large capital sum immediately
- ✓You want to keep the option of renting out your property
- ✓You do not need regular income
Choose the life annuity if...
- ✓You prefer guaranteed monthly income for life
- ✓A smaller capital sum is enough for you
- ✓You want to benefit from the favourable taxation of the annuity
Advantages of the Sale of Bare Ownership
Large Immediate Capital
Receive 60 to 80% of your property's value in a single payment, depending on your age.
You Stay in Your Home
The usufruct guarantees you the right to live in your home until your death.
Freedom to Rent Out
Unlike the right of use and habitation of the life annuity, the usufruct allows you to rent out the property and collect the rents.
Reduced Property Tax
The bare owner often takes on the major repairs.
Easier Transmission
The usufruct can be reversible to the surviving spouse to protect them.
Fast Transaction
No monthly payment to manage, the transaction is finalised quickly.
Concrete Example
Mrs Durand, 74 years - Esch-sur-Alzette
Her property
Calculation
Result
Value of usufruct retained
€292,500
Capital received immediately
€682,500
Mrs Durand stays in her home
For life
Frequently Asked Questions
What is the difference between sale of bare ownership and life annuity?
The sale of bare ownership lets you receive a single, large capital sum immediately (60-80% of value depending on age). The life annuity combines a smaller bouquet (20-40%) with a monthly life annuity. Both allow you to stay in your home.
How much can I get by selling the bare ownership of my house?
The price depends on your age and the value of the property. At 75, you can obtain around 70% of the property value as immediate capital while keeping the right to live in it (30% usufruct).
Can I rent out my property after selling the bare ownership?
Yes, if you keep the usufruct (and not a simple right of use and habitation). The usufruct lets you occupy the property personally OR rent it out and collect the income. This is an advantage over the classic life annuity.
Who pays the charges and the works?
Generally, the usufructuary (you) bears the running charges and maintenance. The bare owner takes on the major repairs (roof, structure). The exact allocation is negotiated in the deed of sale.
Estimate the Value of Your Bare Ownership
Find out how much you could obtain by selling the bare ownership of your property. Free estimate with no obligation.