Be careful, cost trap
Why you should look twice when selling parts
November 19, 2025 – 12:47 p.mReading time: 2 minutes
Selling part of a property promises financial freedom in old age. But many contracts have it all. WWhat pitfalls threaten and what alternatives there are.
Rising electricity and heating costs are affecting many households. Owners of older properties are also confronted with expensive energy-saving renovations. This can be a financial test, especially in retirement. Because often all of your assets are invested almost exclusively in the property you use yourself, while your monthly income drops significantly when you retire.
For many people, a traditional loan is out of the question because of their age. The solution seems to be the so-called partial sale: providers advertise that owners can sell a part – usually a maximum of 50 percent – of their property, but can continue to live there and retain the right of use.
In fact, the model sounds plausible at first: the property is turned into money without having to move out. But the Hamburg consumer advice center warns: “What appears serious at first glance often turns out to be a non-transparent and expensive contract model on closer inspection,” says Sandra Klug, financial expert at the consumer advice center.
Background: Anyone who sells will now pay a so-called usage fee for the share sold. In addition, full responsibility for maintenance and repairs usually remains with the owner. This means: The monthly burden remains – or even increases.
There is also a risk of trouble in the long term. “We receive many complaints about unclear billing or sudden demands,” says Klug. Anyone who wants to buy back their property in full later often pays significantly more than expected.
Particularly problematic: The partial sale has so far been in a legal gray area. Neither the Federal Financial Supervisory Authority (Bafin) nor other authorities systematically monitor the providers. There are also no clear legal requirements.
A legal report commissioned by the Expert Council for Consumer Affairs in March 2025 classifies partial sales models as a hybrid between real estate sales and consumer loans. The consequence: Many consumers do not know what they are getting into and are only inadequately informed about the actual costs, risks and obligations.
The Bafin also warns against misleading advertising, the risk of premature forced sales in the event of late payment and a possible forced auction in the event of the buyer’s insolvency.
The consumer advice center therefore advises that you carefully examine other options and seek comprehensive advice. Because partial sales should always only be the last option.
Sandra Klug recommends checking alternatives first: “Depending on your life situation, a property annuity in the form of a life annuity, a sale with rent-back or a special loan for seniors without ongoing repayment may make more sense.”
It is also important to involve relatives at an early stage and not to allow yourself to be put under time pressure. Because financial security in old age is about more than numbers. It’s about safety, quality of life and self-determination.
