Sell the house and continue living in it indefinitely. This appetizing scenario is not a chimera, at least for the elderly. When a property is acquired, the buyer obtains what is known as full ownership, which is divided into two figures: the bare property (the right that is held on that property) and the lifetime usufruct (the possibility of its use and enjoyment). The legislation allows the owner of a home to sell the null property and keep the usufruct, that is, to maintain the right to live in their home until said usufruct ends, being possible to establish a fixed term or determining a lifetime usufruct, until death of the usufructuary.
In times of uncertainty about the future of pensions, the option of having an extra income through housing seems to arouse more and more interest, especially after the credit market crisis and the collapse of prices have deactivated the alternative of reverse mortgages. The interest in this type of products has grown gradually. It should be borne in mind that a high percentage of those over 65 have a home ownership (89%) and that 85% of their savings are concentrated in their real estate.
Leaving the home to the children to be a springboard for the future is a hallmark of “good parent”, but social reality seems to begin to change those perceptions. Now it is the children or the nephews who are coming to ask more and more, because they want to improve the quality of life of their parents. It can also be a way to lend a hand to children.
Can you rent the apartment? Yes, it is one of the great advantages of this option. Unless otherwise agreed, “the Civil Code tells us that the usufructuary may take advantage of the usufruct property, lease it to another and alienate his right of usufruct. That is, you can collect the rent for the sale and at the time a rent if the older person decides to go live with their children or a residence.
What happens if one of the spouses dies? This situation tends to be very frequent, not only in the case of marriages but also, for example, in the case of siblings who live and share the same house. In these situations, the operation will not end until the death of the last of the two owners. From Retirement Group they explain that the calculation of the rent would be done taking into account the age of the person with the highest life expectancy.
Can you turn back? Unlike the reverse mortgage, and unless there is an improbable agreement between the parties, the sale of the null property does not have a leaflet.
Opting for the sale of the null property can also result in savings for the elderly. According to the Civil Code, the usufructuary would be obliged to continue paying the expenses of the use of the house, such as the ordinary community fee, housing supplies and the Urban Waste Rate. The investor would be responsible for the insurance of the continent of the house and the expenses derived from the operation, such as the notary. These rents also have important fiscal attractions, since they enjoy exemptions that grow with age (at age 70 they reach 92%).