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- 4 min read
Bare Ownership: What It Is, Benefits, and Key Features
In recent years, the concept of bare ownership has attracted growing interest, both among property owners looking for new ways to manage their assets and among investors seeking long-term opportunities. This method allows different needs to be reconciled: on one hand, it provides immediate liquidity to the seller; on the other, it allows the buyer to access a property at a lower price compared to full ownership. In this guide, we analyze in detail what bare ownership is, the advantages it offers for both sellers and buyers, how its value is calculated, and which aspects should be considered before proceeding.
Table of Content
Definition of Bare Ownership
Advantages of Bare Ownership for Sellers
How to Calculate the Value of Bare Ownership
Risks and Considerations to Keep in Mind
Why Rely on Engel & Völkers for Managing Bare Ownership
Definition of Bare Ownership
Bare ownership is a particular form of property ownership, distinct from full ownership because it separates the right of use from the right of possession. In practice, the bare owner holds the title to the property but cannot use it, while the usufructuary retains the right to live in and use the property for the agreed duration (generally for their lifetime).
This distinction creates a balance between two roles:
Bare Owner: holds ownership of the property but cannot enjoy its use until the usufruct ends.
Usufructuary: has the right to live in the property or earn income from it but cannot sell it.
This structure opens up different opportunities depending on the role: for sellers, a way to monetize without leaving their home; for investors, an opportunity to acquire property at advantageous prices.
Advantages of Bare Ownership for Sellers
For property owners, selling the bare ownership of a home can be a smart strategy in various situations. The main advantage is the possibility of obtaining immediate liquidity while continuing to live in the property, thanks to the retention of the usufruct right.
This formula is especially valued by those who wish to plan their future peacefully, for example, by supplementing their pension with additional financial resources without having to leave the home they live in.
In addition, transferring bare ownership can serve as a useful tool for estate and inheritance planning: it allows assets to be passed on to heirs in advance, reducing potential complications later on.
Example: An elderly person sells the bare ownership of their home to an investor, receiving a sum of money that allows them to cover daily expenses more comfortably, while still continuing to live in their house.
How to Calculate the Value of Bare Ownership
Determining the value of bare ownership requires careful consideration and specific expertise. The main factors to take into account are:
Age of the usufructuary: the older the usufructuary, the higher the value of the bare ownership, since the usufruct will last for a shorter period.
Market value of the property: the reference price is always that of full ownership, to which a reduction is applied.
Expected duration of the usufruct: calculated based on official tables that estimate the usufructuary’s life expectancy.
Example: An apartment valued at €400,000 in full ownership might be worth around €280,000 if the usufructuary is 75 years old, while its value could drop to €160,000 if the usufructuary is 50. The difference reflects the estimated duration of the usufruct and the waiting period for the buyer.
Risks and Considerations to Keep in Mind
While selling or purchasing bare ownership has its advantages, there are also aspects that must be evaluated carefully. For buyers, the main limitation is the long waiting periods: the property is not immediately available, and they must wait until the usufruct ends. For sellers, it is important to be aware that once bare ownership is transferred, they can no longer dispose of the property freely in terms of resale.
From a legal perspective, it is essential to thoroughly check the documentation, the deed of origin, and the correct registration of rights. Professional assistance minimizes the risk of future disputes.
Why Rely on Engel & Völkers for Managing Bare Ownership
Managing a property under bare ownership requires precise evaluations, legal expertise, and tailored strategies. Engel & Völkers offers:
Transparent and accurate valuations: to determine the right price of the property, taking into account all factors that affect its value.
Contractual and legal support: to ensure full protection for both sellers and buyers at every stage of the negotiation.
International network of investors: a global network capable of attracting buyers interested in specific solutions such as bare ownership, increasing the chances of a successful sale.
Relying on Engel & Völkers means having a strong partner by your side, one who can turn a complex solution into a safe and advantageous opportunity.
FAQ on Bare Ownership
Bare ownership is the right to own a property without being able to use it, because the right of use remains with the usufructuary until the usufruct expires.
The usufructuary can live in the property or rent it out but cannot sell it. The bare owner holds the title of ownership but will only be able to use the property once the usufruct has ended.
The calculation depends on the age of the usufructuary and the market value of the property, applying the official data that determine the share attributable to the bare owner.
The seller can obtain immediate liquidity while keeping the right of residence, as well as plan inheritance and asset transfer in advance.
Because it allows you to purchase a property at a lower price than full ownership, with the prospect of future appreciation and availability.