Viager vs. Equity Release — Which Is Better?
Two models, one goal: monetise your property and continue living in it. The French viager has operated for centuries, British equity release is growing by 20% annually. Both solve the same problem — wealth locked in property, shortage of cash. Which is better?
How Viager Works
Viager is a traditional French legal institution where an older property owner sells their home to a buyer in exchange for:
- Bouquet — a lump sum payment at the signing of the contract (typically 20–30% of the value)
- Rente viagere — a lifetime monthly annuity
- Droit d'habitation — the right to continue living in the property
The buyer acquires the property after the seller's death. The price is calculated using actuarial tables — the older the seller, the higher the bouquet and annuity.
Key distinction: The buyer is a private individual. Each transaction is unique and the price is negotiated.
How Equity Release Works
Equity release is a British financial product regulated by the FCA (Financial Conduct Authority):
- Lump sum — a one-time payout (the most common variant)
- Drawdown — gradual withdrawal as needed
- Home reversion — sale of a share of the property for cash plus the right of residence
Unlike viager, equity release is an institutionalised product — the provider is an insurance company or a specialised fund, not a private individual.
Market in numbers (2023):
- 70,000+ new contracts per year in the United Kingdom
- Average payout: GBP 80,000 (~CZK 2.4 million / ~EUR 96,000)
- Strict regulation: negative equity guarantee (you never owe more than the property is worth)
Comparison: Viager vs. Equity Release
| Viager (France) | Equity Release (UK) | |
|---|---|---|
| Buyer | Private individual | Insurance company / fund |
| Lump sum | Bouquet (20–30%) | Lump sum (up to 60%) |
| Monthly annuity | Yes, lifetime | Only in drawdown variant |
| Regulation | Civil code | FCA + ERC standards |
| Heir protection | Limited | Guaranteed (no negative equity) |
| Price transparency | Negotiated | Standardised |
| Longevity risk | Borne by buyer | Borne by provider |
What HomeGrif Does
HomeGrif combines the best of both models and adapts them to the Czech legal framework:
From viager, we take:
- Lifetime right of residence (vecne bremeno registered in the Czech Land Registry)
- Monthly annuity as the primary form of payout
- Actuarial calculation based on Czech life tables (CSU 2023)
From equity release, we take:
- Institutional backing (not a private buyer)
- Flexible payout (monthly, lump sum, or combined)
- Heir protection (Earlypass programme)
- Transparent, standardised calculation
Which Model Suits Whom
- Viager: Suitable in France, where it has a legal tradition. In Czech Republic, there is no established market.
- Equity release (reverse mortgage): Requires a specific banking licence. No entity in CZ currently offers it.
- HomeGrif: Designed for the Czech market, Czech legal framework, and Czech price levels.
The Key Difference: Debt vs. Buyback
A reverse mortgage is still a loan. Interest compounds, and after the owner's death the debt can exceed the property's value.
HomeGrif is a buyback of a share of the value — no debt is created, no interest grows. You receive a fair price for the share you sell.
Try It
Find out how much you could receive from your property's value. The calculator combines CSU actuarial tables with a transparent calculation.
Read also: Compare All Alternatives — mortgage, sale, rental | Glossary: viager, equity release, and more | What Is HomeGrif and How Does It Differ from a Mortgage
