DANIEL FEAU : BARE OWNERSHIP

Safe and advantageous, sale under Bare Ownership is drawing rising interest, and proves to be an excellent patrimonial tool providing immediate capital and allowing owners to anticipate the matter of inheritance. Meet Vincent Illouz, Manager of Daniel Féau’s Bare Ownership department.

Specializing in prestige properties in Paris for over 70 years, the Daniel Féau group created a department dedicated to bare ownership in 2021, with Vincent Illouz at the helm :

“By selling a property under the bare ownership scheme, you benefit from the possibility of transforming your property into available, liquid cash while remaining in your home. Contextual factors include extending your lifetime, anxiety related to reduced pensions, or difficulties in obtaining a bank loan, all making a bare

On the top floor of a 1930’s building in the 7th arrondissement, this magnificent apartment of 139 m² benefits from terraces offering fabulous views of the dome of Les Invalides. An apartment of 39 m² on the 3rd floor and a cellar complete the property. Daniel Féau Nue-Propriété proposed this solution to the owner, a 73 year-old who wanted to spend the rest of his life in his home while benefiting from bare ownership. Bare ownership value while retaining lifelong use : 4,200,000 €. Valeur de la nue-propriété en conservant l’usufruit toute la vie durant : 4.200.000 €

On the 4th floor of a building with lift on Avenue Victor Hugo in the 16th arrondissement, this dual-aspect apartment of 88 m² with a terrace of 12 m² is comprised of a reception room, a separate kitchen, and 2 bedrooms. Daniel Féau Nue-Propriété offered this solution to the 72 year-old owner who wanted to spend the rest of her life in her home while obtaining income via bare ownership. Bare ownership value while retaining lifelong use : 950,000 €. Valeur de la nue-propriété en conservant l’usufruit toute la vie durant : 950.000 €

In a handsome building in the 16th arrondissement, this apartment of 212 m² offering a superb clear view of Avenue Foch is comprised of a large drawing-room, a small sitting-room, a dining-room, kitchen, and 3 bedrooms including a suite. Daniel Féau Nue-Propriété offered this solution to the owners, a couple wanting to retain the use of their property for five years while obtaining capital immediately. Bare ownership value while retaining temporary use for 5 years : 2,720,000 €. Valeur de la nue-propriété en conservant un usufruit temporaire de 5 ans : 2.720.000 €

After 10 years of experience in luxury real estate, Vincent Illouz joined the Daniel Féau agency in 2021 and created the Bare Ownership department whose activities cover all of France. Daniel Féau Nue-Propriété, 30 avenue Pierre 1er de Serbie, Paris 8. (01 53 23 80 47) www.danielfeau.com

ownership sale increasingly attractive”.

While, for a very long time, the only way to obtain cash from one’s property was the “viager”, bare ownership is now making its mark as an ideal solution :

“In fact, unlike the “viager”, a bare ownership sale allows the owner to retain the right to live in the property, but also to rent it out while receiving unique and substantial income. As a reminder, the right to ownership (or legal title) is comprised of three elements : “Abusus”, the right to dispose of one’s property, “Usus”, the right to live in it, and “Fructus”, the right to rent it out and receive income from rent. Senior citizens who sell their properties under bare ownership decline Abusus while retaining Usus and Fructus (usufruit), thus transforming their real estate asset into available cash while being sure of remaining in their home. It is also possible for sellers to opt for this type of transaction while retaining temporary usufruct, for a fixed length of time. Let’s take the example of an 80 year-old owner of an apartment estimated at 1 million euros. Discount is calculated depending on age and life expectancy, so in this precise case one would be talking about a discount of 30 to 35% of the property’s market value. The owner will therefore receive 650,000 to 700,000 €”.

What are the other advantages of sale under bare ownership ? “The first is that, in the case of a couple, it allows for the surviving spouse to be protected,” says Vincent Illouz. “The second is that the owner can make donations during his lifetime to his family, 100,000 € per parent per child, and 31,865 € per grandparent per grandchild every 15 years, with no taxation. A good way of anticipating and dealing with inheritance. This solution is also an excellent tool for smoothly resolving complex situations resulting from break-ups and restructuring of the family.”