In a life annuity, the buyer pays an annuity in hard and tumbling coins. The situation is more complicated to manage in a “food lease”. The annuity is paid in kind (aid, care, etc.), which makes it difficult to monitor. Explanations.
A sale with a “food lease” closely resembles the life annuity but it is much less known and much less used in practice. In fact, a food lease should be seen as a special form of life.
The difference with a “classic” life annuity lies in the fact that part of the annuity is paid in the form of maintenance and care of the annuitant.
When a property is sold with the addition of a food lease, the buyer undertakes to take charge of the seller’s daily life: he must therefore provide him with food, its daily maintenance and, above all, medical and paramedical care which may include assistance enabling the seller to have a comfortable life.A very special annuity
The food lease is obviously more complex than the simple life annuity since while the payments are fixed (except possible indexation) in the case of a life annuity, they are likely to vary according to the needs of the seller in the under a food lease.
Thus, the buyer faces several risks: the life of the seller but also the evolution of his state of health, and therefore his needs. For its part, the seller takes the risk of depending on someone dishonest.
In a way, the life annuity can be compared to a rate loan