inverse mortgage spain - equity release spain

inverse mortgage spain - spanish mortgage broker Henry Slade introduces you to a product designed to give home-owners extra income ...

Need Extra Income?
You're A Home Owner In Spain?
Then A Home Pension Is For You!...

Are you one of the many expats in Spain who requires extra income for a better life?

Then a Home Pension - also known as an Inverse Mortgage - could be for you.

The Home Pension is a product for people over 60 years old, which allows your pension to be complemented with additional income that you obtain through a credit - a credit you'll never have to pay.

With this income, you'll be able to improve your lifestyle - for the long or short term.

Furthermore, if you want an amount to cover an extraordinary expense, this transaction is allowed as well.

Let's take a closer look at this product, how it works, and what it can be used for ...

inverse mortgage spain - details

First of all, the guarantee for the credit will be your first or second home, which must be an unencumbered property.

Advantages

The real estate still remains your property and, later, it will become the property of your heirs.
You'll never have to pay up any amount at all. All expenses involved in the transaction will be covered by the credit: from transaction management fees and the fees for the notary, the property register, taxes, etc., as well as any interests accrued in the future. You'll only need to cover the valuation fees that must be done beforehand.
What's more, if you're over 65 years old and it's your first residence, the transaction is exempt of tax, therefore the amounts you obtain will be greater still.

Payment modalities

You may choose between the following modalities to receive income:

Life income: you'll receive a monthly amount for the rest of your life. The amount can either be constant or increasing by 1, 2 or 3% annually. If there are two owners, and therefore joint owners, even if one passes away, the other will still receive the same pension for the rest of his/her life.
Temporary income: you'll receive a monthly income for an established period which can be for a minimum of 5 years through to a maximum depending on your age.
Single payment: you'll receive one lump sum when you sign for the transaction.

With the first two types of payment, apart from monthly payments, an additional amount can be made available.

Type of interest:

Fixed - constant for the whole time the credit is valid.

inverse mortgage spain - fees

Opening fee: this is the only commission accrued by the account and amounts to 1% of the credit limit.
There are no commissions on the unused balance, nor are there any study fees, nor excess, nor administration, nor entry fees.
Cancellation. The account can be settled:

Compensation for withdrawal amounting to 0.5% of the amount cancelled if it is cancelled during the first 5 years and 0.25% after the 6th year. If a loss is produced for the bank, you must also pay risk compensation of the interest rate at a maximum of 3% over the cancelled amount.

Tax treatment

Any income received up to the age of life expectancy does not accrue tax payment.

Once the life expectancy age has been reached, any income received will be subject to income tax deductions according to the legislation currently in force.

With the death of one of the insured parties the surviving party will receive 100% of the income but 50% of it must be taxed as inheritance and donations.

inverse mortgage spain - further information

Would you like to learn more about the Home Mortgage?

You can request a simulation, showing all the possibilities and different options for income that you could receive depending on the value of your house and your age, by filling in the form you'll find towards the end of our Spanish mortgage page.

For further details, click here and fill in the short form you'll find towards the end of the page.