How does moving to a nursing home affect your lifelong right of residence?

How does moving to a nursing home affect your lifelong right of residence?

According to a report by www.t-online.de, the right of residence for life also extends to moving into a nursing home. This allows the resident to return to their home at any time. However, the right of residence only expires if the property becomes uninhabitable or the person entitled to live there requires permanent medical care, for example if they are in a coma. If the person entitled to live there voluntarily gives up their right of residence, the value of the property increases because the owner does not have to rent out the unused premises as a replacement service. If the property is sold, the right of residence does not expire, unless it is a foreclosure auction. In this case, the holder of the right of residence receives compensation.

This information has numerous implications for the real estate market and industry. On the one hand, the possibility that the right of residence remains in effect even if the person entitled to live there moves into a nursing home could increase the attractiveness of properties with the right of residence. Older people may be more inclined to give away a property, particularly if it saves on inheritance tax and protects the property from social security authorities. This could lead to increased demand for gifts with the right to live for life.

On the other hand, the rule that the right of residence remains intact if the property is sold regularly could deter potential buyers. The value of the property is reduced by the right of occupancy, which could lead to lower demand and lower sales prices. Real estate with a lifelong right of residence could therefore be less attractive for buyers, which in turn could have an impact on the real estate market as a whole.