A comprehensive glossary of terms related to equity release, property buyback, and lifetime annuity products — with a focus on the Czech market and HomeGrif.
Equity Release
Equity release is an umbrella term for financial products that allow homeowners to access the cash value tied up in their property without having to sell and move out. The homeowner stays in their home while gradually "consuming" the property's value — through monthly payments, a lump sum, or a combination.
In the Czech context: HomeGrif is the first and currently only equity release product in the Czech Republic. Unlike the UK model (dominated by reverse mortgages), HomeGrif operates as a property buyback with lifetime residency — similar to the French viager. No Czech bank currently offers reverse mortgages.
Reverse Mortgage (Zpětná hypotéka)
A reverse mortgage is a loan secured against the value of a homeowner's property. Unlike a regular mortgage, the borrower makes no monthly payments — the debt and interest accumulate and are repaid from the property sale after the owner's death.
In the Czech context: HomeGrif is not a reverse mortgage. No debt or interest is created. It is a property buyback with lifetime residency rights. While reverse mortgage debt grows over time (compounding interest), HomeGrif clients simply "consume" their property value during their lifetime. No Czech bank currently offers reverse mortgages.
Property Buyback with Lifetime Residency (Odkup s právem dožití)
Property buyback with lifetime residency (Czech: odkup nemovitosti s právem dožití) is a legal transaction where the owner sells their property but retains the right to live in it until death. This right is registered as a cadastral encumbrance (věcné břemeno) in the Czech Land Registry.
In the Czech context: This is exactly how HomeGrif works. The client receives up to 75% of the property value as a lifetime annuity or combined payout. The residency right is legally enforceable and registered in the cadastre — no one can evict the client.
Viager
Viager is a traditional French model of property sale with lifetime residency rights. The seller (crédirentier) receives an upfront payment (bouquet) and then monthly annuity payments until death. The buyer (débirentier) acquires the property after the seller's death.
Viager has existed in France since the Middle Ages and is enshrined in the French Civil Code. Approximately 5,000 viager transactions are completed in France annually.
In the Czech context: HomeGrif is a modern, institutionalized version of the viager principle adapted for Czech law. Unlike classic viager, where the buyer is an individual speculator, HomeGrif operates as an institutional partner with transparent terms and heir protection (Earlypass).
Lifetime Annuity (Doživotní renta)
A lifetime annuity from property (Czech: doživotní renta z nemovitosti) is a regular monthly payment that the client receives in exchange for the value of their property. The annuity is paid for the client's entire life regardless of how long they live.
In the Czech context: The annuity amount depends on the property value, client's age, and chosen payout ratio. With a purely monthly payout, the client receives the highest total value. You can calculate an estimate using the HomeGrif calculator.
HomeGrif
HomeGrif is a Czech equity release product created by instarea s.r.o. It enables property owners aged 50+ to unlock cash from their mortgage-free home while continuing to live in it.
The name combines "Home" and "Grif" — referencing the griffin, a mythical creature symbolizing the protection of treasure. HomeGrif protects your greatest treasure — your home — while allowing you to benefit from its value.
Key features:
- Up to 75% of property value as annuity or combined payout
- Guaranteed lifetime residency registered in the cadastre
- Heir protection (Earlypass) for the first 5 years
- No debt, no interest, no hidden fees
- Distribution through a partner network of financial advisors
Earlypass
Earlypass is HomeGrif's heir protection program. If the client passes away within the first 5 years of the contract, heirs are entitled to a proportional return of the investment. This eliminates the risk of a "bad deal" in case of early departure.
In the Czech context: Earlypass acts as an insurance mechanism for the family. The earlier the passing occurs, the larger the portion returned to heirs. After 5 years, the contract is fully realized and all future payments are pure income for the client.
Cadastral Encumbrance (Věcné břemeno dožití)
Věcné břemeno dožití (cadastral encumbrance of lifetime residency, or služebnost bytu) is a legal instrument under the Czech Civil Code (§ 1297 NOZ) that guarantees the entitled person the right to live in a property for their entire life. The encumbrance is registered in the Czech Land Registry (katastr nemovitostí) and is legally enforceable against any future owner.
In the Czech context: This is the legal backbone of the entire HomeGrif product. Upon signing the contract, the encumbrance is registered in the cadastre — protecting the client from eviction. Even if HomeGrif were to sell the property to a third party, the new owner must respect the lifetime residency right.
No Negative Equity Guarantee
The No Negative Equity Guarantee (NNEG) is a consumer protection mechanism ensuring that a client never owes more than the current value of their property. It is a standard of the UK equity release market established by the Equity Release Council.
In the Czech context: Since HomeGrif is not a loan, the NNEG principle applies differently. The client sells a share of their property value under fixed terms — no debt is created that could exceed the property value. The risk of property price decline is borne by HomeGrif, not the client.
Leibrente
Leibrente is the German equivalent of a lifetime property annuity. In Germany, it works similarly to viager in France — the owner sells their property in exchange for monthly payments and lifetime residency rights. The market is regulated but relatively small compared to UK equity release.
In the Czech context: Leibrente is one of the European models that inspired HomeGrif. Unlike the German market, where individual transactions dominate, HomeGrif offers an institutional approach with transparent terms.
Teilverkauf
Teilverkauf (partial sale) is a newer German model where the owner sells only a share of their property (typically 10–50%) to an investor while continuing to live there. Unlike classic Leibrente, the owner retains majority ownership.
In the Czech context: Teilverkauf is conceptually similar to HomeGrif's combined payout mode, where the client receives part of the value upfront and the rest as an annuity. The difference is that HomeGrif is a complete transaction with lifetime residency rights, while Teilverkauf creates a co-ownership relationship.
Dead Equity (Mrtvý kapitál)
Dead equity (Czech: mrtvý kapitál) is the value of a property that "sits idle" — the owner cannot use it for daily expenses, investments, or helping family. For owners of mortgage-free apartments worth millions of Czech crowns, it's a paradox: they are "rich on paper" but cash-poor.
In the Czech context: Unlocking dead equity is HomeGrif's core value proposition. The average apartment in the Czech Republic is worth CZK 3–6 million. For retirees with an average pension of CZK 20,700/month, this value can mean a significant improvement in quality of life.
Pension Replacement Ratio (Náhradový poměr důchodu)
The pension replacement ratio expresses what percentage of pre-retirement income is covered by the pension. In the Czech Republic, the average replacement ratio is around 45% — one of the lowest in the EU. This means income drops to less than half after retirement.
In the Czech context: The low replacement ratio is the primary motivation for HomeGrif clients. The 2026 pension reform further worsens the situation by reducing indexation. A property annuity can significantly increase the replacement ratio — for example, from 45% to 65–80% depending on the property value.
Combined Payout (Kombinovaná výplata)
A combined payout is a regime where the client receives part of the value upfront (typically up to 33%) and the rest as a lifetime annuity. It represents the "golden middle ground" between a purely monthly annuity and a lump-sum payment.
In the Czech context: The combined mode is the most popular choice among HomeGrif clients. The lump sum covers urgent needs (helping children with a mortgage, renovation, debt repayment), while the monthly annuity provides regular income. We recommend the upfront portion be max 33% — a higher share reduces the total payout value.
Bouquet
Bouquet (French for "bouquet" or "bunch") is the upfront lump-sum payment in a viager transaction in France. It typically amounts to 20–30% of the property value. The remainder is paid as a monthly annuity (rente viagère).
In the Czech context: The bouquet corresponds to the upfront component of HomeGrif's combined payout. While in France the bouquet is traditionally paid at contract signing, HomeGrif offers more flexible terms and transparent calculation through its calculator.