Some seniors, faced with a decline in purchasing power and unable to access bank loans, given their age, are struggling to make ends meet. However, this growing segment of the population has non-liquid wealth and therefore little exploited until today: its real estate.
Thanks to this heritage, two scenarios were until now possible for those wishing to generate hard cash in a few months: the traditional life annuity sale (which gives rise to the payment of a bouquet at the sale, then an annuity lifetime) and, for several years, the transfer of bare ownership of the property (which involves the payment of a single bouquet).
The downside of these two transactions? Their irreversible nature. The property in question definitively leaves the senior citizen’s assets and will not revert to his or her heirs.
In this spirit, always, of freeing cash from a stone heritage, new formulas have been flourishing on the market for several months. Several start-ups, such as Arrago, Dillan, Hyppo and Merci Prosper, offer to pay cash to seniors based on the value of their apartment or house. if they have fully repaid their mortgage. Depending on the sites, the minimum amount released ranges from 30,000 to 100,000 euros, for a minimum market value of the property ranging from 180,000 to 300,000 euros.
Debt to the estate
This partial monetization of the property allows retirees to find themselves with a well-stocked bank account, without having to change their lifestyle habits. He continues to live within “his walls” and spends this abundance of cash as he wishes (leisure, work, etc.). The accounts will be settled later. These platforms insist on the flexibility of their offer. Thus, the senior can repay the amount in advance at any time. and return to the initial situation. And his heirs will be able to pay this debt to the estate if they wish to recover the property.
On closer inspection, two types of proposition coexist: sale and credit. In the first category, Merci Prosper says it is ready to buy between 10% and 50% of the value of the property; this amounts to joint ownership. Please note: here you must pay 8% transfer duties, plus commission fees representing 10% of the monetized value, and an occupancy compensation.
“No mortgage is taken on the property. The senior citizen will be able to pass on his remaining share of the full ownership to his beneficiaries upon his death. The latter can, if they wish, buy back our share at the market price. or the property will be sold »specifies Thibault Corvaisier, president and co-founder of this start-up.
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