The french have this system and I've been loooking at it for a while, its a pretty good asset for your super I reckon. I just need to learn french and have a very good understanding of the french market before I make the leap.
google "French Viager", this site is pretty good
http://www.paris-viager.com/
Essentially you purchase the property at a steep discount sometimes 30% of the purchase cost. They get to live in the property for the rest of their lives and you pay them a monthly rent indexed to inflation
The purchase cost and monthly rent are determined by how old they are and what you can negotiate.
If they die before their life expectancy you get a bargin if they live too long it ends up costing you more.
Ther french do it because of inheritance taxes mainly.
Do the french have reverse mortgages?
Through the CBA reverse mortgage being 85+ she would be able to have access to 40% of the value of her property to a maximum of $425,000