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Reversionary Question

Posted on: 16th Oct, 2007 07:13 pm
If a property is listed with a market value of 260,000 euro and for sale with a lump sum of 56000 euro and 450 annuity...how much does the buyer actually pay? 56,000 plus 450euro annually until the vendor dies or leaves or what? thanks.
Hi Paul,

Now in this case, the buyer has to pay 56000 euro at first and 450 euro annuity until the owner's death. This buyer will get ownership of the property after owner's death.
Posted on: 16th Oct, 2007 10:29 pm
That would be a great deal know matter how long it was.
Posted on: 16th Oct, 2007 10:47 pm
Hi Paul,

In Reversion property, the buyer has to pay either a first time payment as it is here of 56000 euro or monthly annuity as it is here 450 euro and the buyer can only own the property after the owner's death. Thus the buyer can own the property with much less than the actual market price. The owner will stay at the property as a tenant until his/her death.

Thanks,
Larry
Posted on: 16th Oct, 2007 10:59 pm
Hello Paul,

56000 euro is a one time deposit, since it is a fraction of the market value of the property and along with that you have to pay the 450 euro monthly till the owner's death.
Posted on: 16th Oct, 2007 11:25 pm
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