En Viager. Property but at what price?

An En Viager, a long-term but less expensive way to buy property in France, is definitely not for the faint-hearted. As although all Terms and Conditions are agreed upfront the bottom line is the current owners have to die. Yes, you heard me, they must die before you can move in or sell on. But don't be put off by my writer's rhetoric as in general both parties are surprisingly happy with their En Viager lot.

Okay, so it works like this. You cruise through the En Viager property offerings in for example the Legasse Viager and find a bijou that takes your fancy. The current owner or owners, more often than not elderly, will ask for an upfront lump sum plus a monthly payment or simply just a monthly payment. The estimated final amount that the buyer shells out will, nine times out of ten, be considerably lower than the house or apartment's market value.

But the sellers are happy because they obtain lifetime financial security, plus get a instant cash lump sum which they can use to go on endless cruises, gamble with or if they're feeling particularly nice, divvy amongst the children and the grand-children. This also means nothing goes to the taxman. Unless their son is the taxman, then they'll of course want to give him some cash. I digress. And all this while being able to live in their home until the end of their days. And if there are any major repair problems with the property during this time they are the new 'owner' / the buyer's responsibility. So it looks very good from the seller's perspective.

And from the buyer's? It's a little trickier. Emotionally. Ultimately you will get to own a property at 20% and even up to 50% less than its market value. Good. But you are also going to spend every waiting day sitting on a double-edged sword. As the lovely old lady who bakes you cakes every time you visit your future property must slip off her mortal coil so that you can make a Buck. Bad.

I once considered doing an En Viager with my mother as a crafty way of circumnavigating Napoleonic Law and leaving my non-French resident siblings empty-handed. Nice. But when I considered the grim reality of my heart pounding in a dreadful mixture of fear and hope whenever my mother failed to answer the telephone I decided an En Viager is something you should only do with strangers. How would I forgive myself if a banana skin failed to make it into the bin and mother and Zimmer went flying into the big blue yonder? And 'by coincidence' I suddenly and prematurely owned her home? I had a hard enough time in the guilt-department when she tripped over my creamy-colored Retriever who was sleeping on her creamy-colored tiles and she broke her hip. No doubt meetings were had by my family back in the Homeland and so in my disfavour.

A young French friend of mine bought his very first apartment in Nice En Viager. And at 20 years old, frankly he hit the En Viager Jackpot. Cute top floor apartment with roof terrace and only a small fixed monthly sum to pay. But as ‘luck' (one hopes) would have it the little croissant-baking old lady took an early one-way ticket to her final resting place. So after paying only the equivalent of five months 'rent' the apartment was his.

An En Viager is a legitimate way to buy a property for less than its market value but do think long term. Think of it as an investment. And don't be tempted to scare the elderly owners with photos of Andrew Lloyd Webber in the bath in order to speed up the process. Because even if Judge Grasse never finds out what you did that sweet little old lady may decide to haunt you for the rest of your days. You've been warned. Now go grab yourself the bargain of the century.