Lifetime mortgages in Spain
First developed in the UK, Lifetime mortgages or “lifetime loans” provide a way to take advantage of the equity in your property without having to worry about whether or not you can afford the monthly payments.
This is particularly useful right now as the increased values of Spanish property combined with the poor Sterling to Euro exchange rate has left many retirees asset rich and income poor. Unfortunately, if you did not have the means to pay back a loan, the equity in your house was only useful to you if you actually sold your property - until now.
A UK building society now provides a product to both expatriates (expats) living in Spain and non-residents who own Spanish property, that overcomes the issues that apply to similar products.
- The minimum age for a lifetime loan is 60 years old.
- The minimum loan amount is 22% of the value of your property.
- There are no monthly payments - ever.
- You can use the cash from the lifetime mortgage for anything.
The product has been approved by the FSA in the UK meaning you have the comfort of knowing it falls within current UK regulations applied to lifetime loans.
What a Lifetime loan allows you to do is free up a percentage of the value of your Spanish home and invest or use the extra cash however you wish. All this can be achieved knowing you will never have to make repayments to make during your lifetime and that the loan will never exceed the value of your property - guaranteed.
Example
- If you own a property valued at £300,000, you may take from 22% upwards as equity release.
- This would give you £66,000 cash to spend as you wish.
You may decide to purchase a new car or put this money in a high interest account to give you an income. This choice is yours.
The minimum amount you can release is 22% and increases depending upon your age.
All costs are taken from the equity so there is usually nothing for you to pay upfront.
If you would like to find out more about lifetime mortgages in Spain:
