DeutschEasements and encumbrances
- Right of way
- Right of residence
- Life annuities
- Right of usufruct
- Life interests
- Attendance and care obligations
etc.
You can find definitions of these and many other property industry terms in this online-Lexikon.
All these rights and/or obligations are associated with recurring commercial advantages and disadvantages. Value is calculated as capitalisation over a given period of validity, for example the statistical life expectancy of the right-holder. “Capitalisation” means calculating the cash value of the commercial advantages and disadvantages on a given date.
Attendance and care – a special case:
Caring for relatives is a considerable undertaking and an extraordinary service to society. Lay care means taking responsibility for a wide range of activities and services that may change with the duration and degree of care required. A distinction is drawn between attendance (=household assistance) and care (= long-term support for regular and usual activities as part of day-to-day living as set out in section 14 of Germany’s Social Code, Sozialgesetzbuch XI).
Establishing a value for care obligations includes using empirical variables to calculate the estimated costs across the statistical remaining life expectancy of the care receiver(s). This will incorporate the rising level of care required with age and the increased costs associated with this. To make this calculation, we make use of specialist software that is approved by experts in the field and is based on the findings of official German care statistics. We have provided an anonymised sample appraisal for your inspection here.
A property encumbered with care obligations will suffer a considerable reduction in value.