Who benefits from the lifelong right of residence?
The lifelong right of residence offers a cost-effective way to use a property permanently without having to pay rent. Senior citizens in particular can secure their living space in this way, regardless of rising rents. However, there are restrictions when it comes to changes or the use of the property.
What does lifelong right of residence mean?
A lifelong right of residence entitles a person to use a property until the end of their life. This right remains in place even if the property is sold or auctioned.
- Costs: Rent is waived, but the tenant bears the ancillary costs.
- Maintenance: Minor repairs are carried out by the owner of the right of residence. Larger measures require the agreement of the owner.
How do you secure your right of residence?
The right of residence should always be entered in the land register. Without this entry, it can be contested under certain circumstances, especially if the property is sold. With an entry in the land register, the right of residence remains in place even if the property changes hands.
- Legal certainty in the event of a change of ownership
- No loss of the right of residence by third parties
- Permanent protection
Alternative: Usufructuary right
The usufruct right offers a flexible alternative to the right of residence. It not only allows you to use the property, but also to rent it out. The income can be used to finance a care home, for example.
- Advantage: Income from letting remains with the usufructuary.
- Right of recovery: Protects the property from foreclosure if the new owner becomes insolvent.
Why buy your own property?
If you don't have a right of residence, you should consider buying a property. This offers numerous advantages:
- Freedom of design: Full control over utilisation.
- Asset accumulation: Property can be used as an investment or bequeathed.
- Combination: A right of residence can be combined with a property in order to optimise inheritance options.
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Note: We do not offer legal advice. All information and recommendations are for informational purposes only and are not a substitute for legal or tax advice. Please consult a qualified lawyer or tax advisor for legal or tax advice.
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