French Property Reversion

Discussion in 'Finance, Property, Law' started by Danny_Dravot, May 13, 2007.

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  1. Has anybody ever done a Property Reversion, i believe only possible in France.

    Essentially, the concept, protected by French law is this:

    OAPs retire and want to release equity in propert. They 'sell' you their house at a massively discounted rate but continue to live in it, additionally, you pay a monthly sum to them until they croke. Upon their demise, the property becomes your to live in, sell, rent etc.

    Seems a good stystem, if a little macabre!
  2. There's no reason why you couldn't enter into a formal contract with someone in this country to do the same. It would take place behind a trust of land. Law of property is not my area, but I can think of no reason why this would not be possible.

    It is the same principle that you see on all those "Equity release" adverts on TV. Many firms and banks etc do it now, eg -

    Only difference is this would be a contract between two private parties....
  3. ugly

    ugly LE Moderator

    The law on attorney changes in October so if push came to shove your kids could deny you necessary medical trearment under the new rules. Its almost worth taking out poer of attorney papers now although my kids are both teenagers so the Govt cant have my house when my lagging the bed is no longer down to ale!
  4. Lasting powers of Attorney - s9 Mental Capacity Act,


    When it comes into force will only affect the ability of those you specifically designate to make decisions on your behalf in the event of you losing competance / capacity to do so, eg going senile. If you don't make one, then any decision made must be in your "best interests" currently defined in the common law soon to be defined as per s4 of the Act. There is a wide scope for any suspect decisions to be challenged in court.

    With specific regard to medical treatment, under s24 you can state how you want to be treated, or not treated, by making an "advanced decision", e.g have life support systems turned off in the event of a serious brain injury. If you do not create either a LPOA or an AD the doctors are duty bound to act in your "best interests" (a medico-legal term) and no-one, not even family can override their decision.

    Somene given a LPOA under the act can make a disposition of any property you own, but it is treated as being your decision, therefore inheritance tax etc will still apply. :x

    If you want to avoid the government getting their grubby paws on your money when you go the great re-org in the sky, the best way is to see a Trust Lawyer or an Accountant who will be able to set up something to circumvent death duties (inheritance tax)....
  5. ugly

    ugly LE Moderator

    Only problem is that in this sceptic isle we have retrospective tax legislation so what is pucker now may not be when the time comes so unless you donate to either party you are possibly fecked!
  6. That is certainly true!!! :x