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1. Introduction
The tax measures aimed at limiting public debt have contributed, throughout Europe, to further slowing down the housing market that for some time has been in a phase of stagnation because of both the current recession and the reduction of credit to households and businesses.
In this context of uncertainty and lack of liquidity, the interest of investors is turning to how to make “alternative” property investments. This is the case of rent to buy, exchange, reverse mortgage, as well as the sale of bare ownership.
Practiced since the early 1980s, rent to buy offers the tenant of a property the right, not obligation, to purchase the property after a number of years, with the rent paid being partial payment of the price. This method is interesting not only for buyers who either do not have immediate liquidity or cannot obtain a mortgage but also for those sellers who do not have the need to immediately collect the amount of the property.
Exchange is the reciprocal transfer of ownership of property, or other rights, from one party to another. In the property market, the exchanging of building land with residential units to be built on the same soil is frequent, this is part of the “exchange of what is present with what will be in the future”. This transaction allows for the reduction of the debt of both parties with a substantial saving.
The reverse mortgage is another formula that is becoming very widespread. It grants loans to elderly individuals that are fully refunded, in a lump sum, in exchange for a first mortgage on residential property. The loan is designed so as not to provide refunds, nor cover the interest until the death of the contractor. Apart from voluntary and anticipated extinction by the subscriber, the repayment of the loan and accrued interest is borne by the heirs, who decide whether to pay or dispose of the property.
Among the various options, the sale of the bare ownership subject to the lifetime usufruct to the seller is creating a great deal of interest among investors. This formula entails the transfer of ownership of a property which, however, is not accompanied by the right to use the property....