Bare Ownership

What is Bare Ownership

When you buy a property you become the freehold owner. This freehold can be divided into two types of ownership:

  • Bare ownership grants ownership of the property but does not grant possession
  • Usufruct grants the use and enjoyment of the asset.

Let’s imagine that a property owner sells his apartment but still holds usufruct rights. In this case, the owner is selling the bare ownership but it keeps the right to continue living in it. Simply put, bare ownership is selling a house but still living in it.

There are two types of

Sale of the Bare Ownership

1. With Lifelong Usufruct

The homeowner(s) sells the bare ownership of the property for a percentage* of the market value in exchange for a single, lump-sum payment and retain the usufruct for life.

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2. With Temporary Usufruct

The homeowner(s) sells the bare ownership of the property for a percentage* of the market value in exchange for a single, lump-sum payment and retain the usufruct for an agreed period of time (eg. 10 years) after which time the owners leave the property and hand over full ownership to the investor.

* The percentage offered to you will be based upon several determining factors. Primarily, your age(s), the type of property you own and its location and the product you are choosing

General Disclaimer: The results are not guaranteed and they may vary from person to person.

Some of the operation

Advantages

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Minimal fees to pay

During the sale, all fees related to the Notary’s Office, the Land Registry and taxes derived from the operation will be paid by the buyer (except for the Capital Gains Tax).

Reduction in monthly expenses

Once the property is sold you will only be responsible for paying for the contents insurance, household bills and the rubbish collection.

All other taxes and fees including buildings insurance will be paid by the buyer.

Rental Opportunities

You are perfectly entitled to rent the property out and receive income from it if you choose.

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Legal guarantees

All transactions are formalized before a public notary and registered at the Land Registry.

Contact Us

Speak to one of out friendly team – all estimates and proposals are free of charge.

(+34) 910 259 324

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