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Rent or sell your house to pay the EHPAD
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Rent or sell your house to pay the EHPAD

26 January 2022

The installation in a retirement home represents a certain cost, and it is not always easy to meet this expense. In this context, selling your property is a wise calculation.

Here's everything you need to know to put your property up for sale and finance your retirement home .

If you have had the opportunity to buy a house in Collioure and want to put it up for sale to finance your retirement home, here is everything you need to know.

Rent out your property

If you do not want to get rid of your property permanently, renting it out can be a temporary alternative. This is particularly the case when you want to pass on your possessions to your descendants as an inheritance. The rents collected will allow you to pay for your medical establishment .

But this source of income may not be enough to cover all the costs. Know that your department offers dedicated social assistance: Social Assistance for Accommodation.

This additional financial aid is paid to an elderly person whose income is lower than the cost of the EHPAD in which he wishes to enter. You can therefore pay the difference between the establishment's bill and your monthly income.

The amount of aid varies according to:

  • your situation: married, widowed or single
  • the situation of your food debtors for your direct ascendants and descendants. It can then take the form of alimony.
  • the Social Assistance regulations of your department

The sums paid can be recovered if:

  • you have made a donation in the 10 years preceding the application for Social Housing Assistance or after this application
  • there is a return to better fortune such as an inheritance, for example
  • you die

Note, however, that this contribution from the institution does not exempt your family members from making additional contributions.

The law does not require any assistance from your descendants or your brothers and sisters. Family solidarity is only governed by a moral obligation, that is to say without legal impact.

Paying for a retirement home with real estate through rental requires knowledge of the market and a certain expertise to ensure that your investment is profitable.

We advise you to approach a real estate agency to be better guided in your project.

Selling your property for life

The life annuity sale consists of the sale of your property (you are the annuitant) to a purchaser (called the annuitant) who will pay you the price in the form of an annuity.

This is called “life” since it will be paid to you until your death. Its frequency is to be defined: monthly, quarterly or other. You therefore still have your property for the rest of your life and become usufructuary of your house .

In a sense, you are giving credit to your buyer, either for part of the amount if he pays you a sum immediately called a "bouquet", or for the whole price if there is no bouquet.

To secure the relationship, the notary takes a kind of mortgage called "seller's privilege" on the property sold, which will allow you to recover your property in the event of non-payment of the rent by the buyer.

Thanks to the annuity received, you will be able to pay the costs of the retirement establishment . If it is not enough to pay the difference between your income and the price of the EHPAD, you can then request Social Assistance from your department.

Paying for a retirement home with real estate through life annuity has several advantages. You will no longer be in charge of paying property tax, housing tax and any co-ownership charges.

But if you have children, the life annuity solution does not seem appropriate because the family heritage can be strongly impacted.

Selling your property using a real estate agency

To be able to finance the retirement home in which you wish to enter, making your property profitable is an interesting operation. But the process is complex and requires time and expertise.

10 reasons why you should use an agency:

  1. be advised on the strategy to adopt
  2. know the market at your fingertips
  3. promote your property
  4. benefit from a database of potential buyers
  5. organize and manage visits
  6. delegate the negotiation with your future buyers
  7. ensure that their file is complete and flawless
  8. have a mediator between you and your buyer in the event of disputes before the signing of the final deed of sale
  9. sell your house or apartment at the right price
  10. write the sales agreement

Let's focus on this last point. This written promise commits you, vis-à-vis the buyer, to sell your property and is in the form of an official document. It definitively decides and specifies the two parties and the conditions of sale, as well as the price.

It is therefore more judicious to delegate this part since its writing is long and includes many clauses which constitute essential elements in terms of law.

A good sales agreement protects both the seller (you) and the buyer. A real estate agent is qualified to draft such a document. His knowledge of legal matters is indispensable and will save you precious time.

To cope with the substantial costs of accommodation in a retirement home, making your property profitable is an interesting operation when you are an owner.

Do you want to estimate or sell your property in Collioure? Get advice from our experts to study the best sources of profitability for your property.

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