Life Annuity (Viager) Calculator

Calculate the down payment (bouquet) and monthly annuity for a viager real estate purchase based on seller age and property value.

Parameters

Property value (€)

Seller's age

Gender

Down payment (% of value) (30%)

Expected return rate (%)

Down payment

90 000 €

Monthly annuity

863 €

Life expectancy

15.6 years

Life annuity details

Occupancy discount (DUH)30 %

Occupied value210 000 €

Down payment90 000 €

Annual annuity10 356 €

Estimated total paid251 381 €

Buyer's potential gain48 619 €

Cumulative payments vs property value

What is a viager sale?

A viager is a uniquely French real estate transaction where the buyer pays a down payment (bouquet) plus a monthly annuity (rente) to the seller for life. In an occupied viager (viager occupe), the seller continues living in the property, which reduces the purchase price by the value of the occupancy right (DUH).

Down Payment (Bouquet)

A lump sum paid at signing, typically 20-30% of the property's occupied value. This amount is freely negotiated between buyer and seller.

Monthly Annuity (Rente)

A monthly payment made to the seller for life, calculated based on the remaining value after the bouquet, divided by life expectancy.

Occupancy Discount (DUH)

When the seller continues to live in the property, a discount is applied based on age and life expectancy, typically reducing the price by 40-60%.

How the annuity is calculated

The annuity is based on the property value minus the occupancy discount (DUH) and the down payment. This remaining amount is converted into a life annuity using INSEE mortality tables and an expected return rate. The older the seller, the higher the monthly annuity (shorter expected payment period).

Risks and considerations

The viager is inherently uncertain: if the seller lives longer than expected, the buyer pays more than the property's value. Conversely, early death benefits the buyer. The famous case of Jeanne Calment, who outlived her buyer, illustrates this risk perfectly.

Frequently asked questions

What happens if the buyer dies before the seller?▼

The obligation to pay the annuity transfers to the buyer's heirs. The annuity is a debt attached to the property and cannot be cancelled by the buyer's death.

Is the annuity indexed to inflation?▼

Most viager contracts include an indexation clause, typically linked to the INSEE consumer price index. Without such a clause, the annuity remains fixed, which disadvantages the seller over time.

Can I get a mortgage to buy in viager?▼

Banks rarely finance viager purchases because there is no clear repayment schedule and the total cost is unknown. Buyers typically use savings or the bouquet comes from available cash.

How is the viager taxed?▼

For the seller, the annuity is partially taxable as income, with a tax-free portion that increases with age (70% exempt after age 70). The bouquet is tax-free. For the buyer, no specific tax advantage applies.