Sale-leaseback
This is a model where an owner sells their property to an investor and can then continue to live there rent-free or at a reduced rent for a specific period.
– Sale with lease agreement: The seller enters into a lease agreement with the buyer and pays rent for the use of the property.
– Hire purchase: The seller has the option to buy the property back after the lease agreement expires.
– Rent-back: The seller sells the property and rents it back for a specific period, often at a reduced rent.
Advantages
– Financial relief: The seller receives a purchase price for the property and can pay off debts or finance other goals.
– Rent-free living: The seller can remain living in the property rent-free or at a reduced rent for a specific period.
– Security: The seller has a secure living situation for a specific period.
Disadvantages
– Loss of ownership: The seller gives up ownership of the property.
– Rental costs: The seller must pay rent once the rent-free period has expired.
– Commitment: The seller is bound by the lease agreement and cannot simply move out.
One could go to market with the following details and let the buyer choose:
+++ Sale of the apartment with continued use by the seller (right of residence) +++
1.)
Buyer pays a purchase price of 90,000 euros; the seller then only pays the service charges for life
(heating, water, electricity, etc.). No base rent; the buyer acquires ownership, and the seller remains
as the user for life.
Or 2.)
Buyer pays a purchase price of 140,000 euros; the seller pays a monthly base rent of 500 euros plus service charges for life. The buyer becomes the owner with a leaseback to the seller for life.
Age of owner: 75 years
The repair and maintenance costs within the apartment are covered by the tenant.