Forward Equity Release

By Arnaud Campion
Forward Equity Release

Recover 40-60% of the value of your home immediately

& stay in your home for another 10 years.

Ten-Year Forward Equity Release - Who is this for?

You are a property owner and fond of your main home, but are short of cash to treat yourself, increase your income, help your children and grandchildren, finance projects (home improvements, second home, etc.) or pay off current loans. 

You can sell the bare-ownership of your home at a later date to immediately recover 60% of its value, while continuing to live in it for a further 10 years.

With this mechanism, you are certain to recover 100% of the value of your property. 

What is Bare Ownership ?

Full ownership can be split into usufruct and bare ownership :

Split of Ownership

"With the forward selling of bare ownership, the property remains partly owned by the seller - who keeps the usufruct and can live or rent the home until the end of the specified period - and the buyer who becomes the bare owner and will have full ownership at the end of the period.

In practical Terms

The stages of a forward bare ownership sale:

  1. We set up a first appointment to explain the practicalities of a forward bare ownership sale. We visit your property, take photos and collect the  information we need to conduct a free estimate of your home. 
  2. We analyse recent sales of similar properties that took place in your area, the properties currently available on the market, and take into account the characteristics of your home and proximity to shops, schools and public transport. We draw up a detailed estimate.
  3. During our second appointment, we discuss our estimate and how we calculated the value of the bare ownership. We go over how we intend to advertise your home for a quick sale at a fair price.
  4. If you wish to go ahead, we sign an exclusive sales mandate which confirms the selling price, the fees charged by the estate agent and other terms and conditions.
  5. We put the property on the market, deal with potential buyers and manage the viewings.
  6. Once the seller has accepted an offer, we contact the solicitors for the signing of the mutual selling agreement and will follow-up on the sale.
  7. The final sale takes place 2 to 3 months later. The time needed to complete the sale is shorter as most buyers do not apply for a mortgage loan.

Key Advantages

A few practical examples

Pierre and Caroline, 55

Currently live in Paris, but are originally from Normandy where they wish to return to enjoy their retirement

They eventually sell their bare-ownership apartment and immediately receive 60% of the property's value .

With the money, they bought a thatched cottage in the Pays d'Auge which they can enjoy during weekends and holidays.

They plan to keep living in their Parisian flat until they retire; however they are free to move before the end of the 10 years: they can rent it out or arrange an early sale with their buyer.  

Janice, 84

Owns an old house in a village in the south of France that needs a few minor home improvements. 

Keen to remain financially independent and not to burden her children, she sold the bare ownership of her home with a forward sale contract

She recovers 60% of the property's value, and can buy a new boiler and redo the paintwork and decoration .

She also kept some cash with a view to helping her children financially 

Eileen, 82 

Owns a villa on the French Riviera. Her children all live abroad. 

She wanted to organize the disposal of her house as soon as possible to avoid this burden for her children

She will continue living in her home for another 10 years and plans, once the term is up, to move into a hotel-residence in the same town. 

In the meantime, she has the means to help her children and grandchildren fulfill their projects. 

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