Lifetime Mortgage & Equity Release

Lifetime Mortgage & Equity Release

What is a lifetime mortgage?

SUMMARY

• Lets you get a guaranteed monthly income for life while retaining ownership and use of your home.
• The mortgage can be cancelled at any time.
• Monthly income can be for life or for a period of time.
• Favorable taxation.

A lifetime mortgage is a form of equity release scheme for people over 65 years old, where a loan is secured against your property to provide you with a monthly cash to spend as you wish.

Usually interest is added to the lifetime mortgage loan throughout your lifetime, accruing at a fixed or variable rate. The loan plus interest is eventually paid back when you and your partner die. At that point the inheritors will inherit the home and the debt, and they will be able to liquidate it by selling the home, or by taking on a new mortgage, or with their money.

Since it is a loan, tax is not incurred on the monthly income.

Do I qualify for a lifetime mortgage?

You should be aged 65 or older, be the owner of the property for which you are applying for a lifetime pension, and be resident in Spain.

What type of lifetime mortgages schemes exist?

Lifetime Mortgage: You will receive a fixed monthly amount for life.

If there are 2 owners, the monthly income is levied until the death of the last one.

It is a product comprising:

• A fixed rate Credit mortgage.
• An insurance that is activated if the client survives a certain age, for which the insurer pays the monthly cash until the death of the insured.

Lifetime Mortgage for a fixed period: You will receive a fixed monthly amount for determined numbered of years.

What is the cost for a lifetime mortgage?

Like other mortgages, a lifetime mortgage involves the expenditure for payment of taxes, notary, agency and property registration. All these expenses are advanced by the Bank’s mortgage loan.

BENEFITS OF A LIFETIME MORTGAGE

You can get extra income to complement your pension while still retaining full ownership and use of your home.

• You do not have to pay in advance any costs or charges to carry this transaction.
• It is the only mortgage that does not involve you in any repayments in your lifetime, and you can cancel it at any time if desired.
• Your inheritors have absolute freedom to decide how to cancel the debt; they may sell the property, or in case they want to keep the ownership of the home, they can pay off the loan, or they may take out a new mortgage loan.
• A lifetime mortgagel product  that is regulated by the Mortgage Market Regulation Law 41/2007 of December 7.
• You should seek independent advice from an Independent Advisor Who will tell you your rights and explain the economic consequences of the operation as stated in the First Additional Provision of Law 41/2007.
• The leading independent reverse mortgage consultant in Spain, we will help you select the best deal for you with an exclusive personalised service.

Contact us now for more information and a personalized quotation.