Many employees can hardly wait: retirement. Financial provisions are made, for example, by purchasing a house or a condominium as an investment and building up financial reserves to be able to maintain one's accustomed standard of living in retirement.
However, if these reserves have been used up and the pension is low, the home is available as an asset – but the wealth is not liquid. The property quickly becomes a burden. The solution: a partial sale of the property. But what is that actually? Under what conditions is a partial sale possible and who benefits from it?
What is a partial property sale?
In a partial sale, a property owner sells a portion of their house or condominium in order to release capital from the home and have it freely available.
Based on a non-binding and free offer, an independent and certified appraiser determines the market value of the property. The partial seller receives the payout amount for the partial sale into their account and can fulfill long-held wishes with the money. Further information on partial sales can be found on the website of Deutsche Teilkauf.
The partial seller can continue to live in their home after the partial sale. In addition, they can use the property economically and, for example, generate rental income. This secures their lifelong right of residence and use. The so-called usufruct right is entered in the land register with priority. Since the partial seller remains a co-owner, they benefit from future increases in the value of the unsold property share. In addition, their heirs receive a right of first refusal on the sold share. In return, the partial seller pays a monthly usage fee to the partial buyer. Furthermore, they must bear the ongoing costs such as operating, maintenance, or modernization costs themselves.
Under what conditions is a partial sale of the property possible?
For a partial sale of the property, the desired payout must be at least 100,000 euros for a maximum of 50 percent of the home. Accordingly, the property must have a market value of at least 200,000 euros.
The assessment of the property value is the responsibility of a certified and independent appraiser, who prepares a corresponding report. The partial property sale offer is aimed primarily at owners aged 55 and over who would like to fulfill wishes with the released property capital – without having to leave their beloved home.
Who benefits from the partial property sale?
Property owners benefit from a partial sale of their own property the moment they have released capital from their home. The reasons for this decision are individual: high maintenance costs combined with a low pension can lead to one's own property becoming a burden.
Furthermore, there may also be a desire to increase the standard of living or to support children or grandchildren financially. In addition, the death of a partner can lead to the house becoming too large. In this case, owners face the painful decision of selling their property with all its valuable memories. The second alternative is to take out a loan and go into debt or to consider a life annuity.
With a partial property sale, however, it is certain: property owners receive liquid funds – without having to leave their home and get used to a new environment.
Advantages of the partial property sale
- Releasing capital: Partial property sellers release a portion of the capital from the property and can use it freely.
- No loan: The partial seller does not have to take out a Loan and thus go into debt.
- Avoiding a move: The partial seller can live in their home for a lifetime and does not have to leave their familiar environment.
- Additional income: The partial seller can rent out the property or a part of it and thus generate rental income.
Conclusion
To release capital from the home, a partial sale of the property is a good option. The value of the house or condominium is determined by an independent and certified appraiser. The partial seller can sell a maximum of half of the property and receives the payout amount into their account.
In addition, the usufruct right is entered in the land register with priority and secures the partial seller a lifelong right of residence and use of the entire property. In return, the partial seller pays a monthly usage fee to the partial buyer, which varies depending on the provider.
A prerequisite for the partial sale is, among other things, that a maximum of 50 percent of the property can be sold and the market value must be at least 200,000 euros. Property owners benefit from the partial sale if they want to release capital from the property while avoiding moving out and relocating as a result of a full property sale. With the capital, long-held wishes can be fulfilled in old age – for example, the purchase of a motorhome or a vacation with the entire family.
