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.
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.
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.