Lifetime mortgage in France: how it works, repayment

How it works

The law defines this loan as a contract by which a credit or financial institution grants an individual a loan, as a lump sum or in periodic payments, “secured by a mortgage over a property of the borrower used exclusively as housing” (our translation) (art. L315-1). Interest is compounded annually. Repayment can only be demanded on the borrower’s death, or on the sale or démembrement (splitting of ownership, e.g. into bare ownership and usufruct) of the property if these occur earlier.

Service-public.gouv.fr distinguishes three formulas:

These loans cannot finance the needs of a business activity (art. L315-3).

Not to be confused with. In a vente en viager (life annuity sale), ownership passes to the buyer; with a lifetime mortgage, you remain the owner. And unlike a standard mortgage, you repay neither capital nor interest during your lifetime under the standard formula (service-public.gouv.fr).

Conditions and amount

The borrower must be an adult and own the home given as security. No medical questionnaire or proof of income is required, and there is no obligation to insure the loan (service-public.gouv.fr).

The property must be used exclusively as housing: main residence, second home or let property. A mixed-use property, residential and professional, is excluded (service-public.gouv.fr).

The amount depends on three criteria (service-public.gouv.fr):

1. the value of the property, set by an expert chosen by you and the lender, at your expense;
2. your age: the younger you are, the lower the amount, because interest will run for longer;
3. your sex, for the same reason of life expectancy.

The loan granted generally ranges between 15% and 75% of the value of the property. The lender may refuse if it considers that the property is likely to lose value.

Mandatory information and signing

The offre préalable (formal loan offer) must include in particular (art. L315-9; service-public.gouv.fr):

• the identity of the parties and the date from which the offer can be accepted;
• a precise description of the mortgaged property and its value as estimated by an expert;
• the nature of the loan and how the funds are paid out;
• for staged payments, a schedule distinguishing the capital and the compounded interest;
• the overall cost of the credit and the taux effectif global (annual percentage rate), with worked examples for several durations;
• the period of validity of the offer.

According to service-public.gouv.fr, the offer includes simulations of how the debt will grow, to see when it could reach the net value of the home.

The time limits. The lender keeps the terms of the offer open for at least 30 days from its issue (art. L315-10). The offer can only be accepted 10 days after receipt, and acceptance takes the form of an acte notarié (deed drawn up by a notary); no funds can be paid out before then (art. L315-11). The deed costs are payable by you, and the notary checks that the property has been correctly valued (service-public.gouv.fr).

During the loan, you must maintain the property; otherwise, the lender may demand early repayment, but it is up to the lender to prove poor maintenance. Letting the property requires the lender’s written consent (service-public.gouv.fr).

Repayment: death, sale or early repayment

On death. “On the death of the borrower or of the last surviving co-borrower, the heirs may pay the debt capped at the value of the property estimated on the day the estate is opened” (art. L315-20). They may also let the lender sell the property: if the price exceeds the debt, the difference goes to the estate; if it is lower, the heirs have nothing to make up and no other asset can be seized (service-public.gouv.fr).

On a sale. The lender must be notified of the planned sale. If it disputes the value, an expert values the property (art. L315-21). According to service-public.gouv.fr, if the valuation finds a value higher than the price, the lender may object to the sale, be repaid on the basis of the estimated value or have the property seized.

Early repayment. You can always repay all the sums paid out (art. L315-16). A partial repayment may be refused if it is less than 10% of the capital paid out (art. R315-1). Any penalty is capped (art. R315-2):

Cost, rate and usury

The lender sets its rate freely, generally high, but the TAEG (annual percentage rate of charge, APRC) cannot exceed the seuil d’usure (usury threshold) (service-public.gouv.fr). The official page, checked on 1 July 2026, applies to it the three thresholds for personal loans by amount, in their version of 1 April 2026 (23.53%, 15.67% and 8.56%). At 1 October 2026, the Banque de France publishes for these categories 23.60% up to €3,000, 15.76% from €3,000 to €6,000 and 8.56% above €6,000. As interest accumulates until the end, service-public.gouv.fr recommends comparing the total owed with that of a consumer loan for the same capital.

Under the periodic-interest formula, a missed payment can cost a penalty of up to 4 months’ interest, and the lender may demand all the capital (service-public.gouv.fr).

Which professional to consult

The notaire (notary) is essential: acceptance of the offer takes the form of a notarial deed, and the notary checks the valuation of the property. A courtier en crédit (mortgage broker) can compare this loan with other financing, such as a prêt in fine (interest-only loan) or a standard loan, with the total cost to hand.