 Information
1. Equity Investment Plan - Release up to 15% of your property value with no repayments, investment covers the loan.
2. Lifetime Mortgage - Minimum age 60, no repayments. Interest roll up with no risk guarantee.
3. Re-Mortgage - Refinance to release some cash. Proof of income required.
Equity Investment Plan
This product is available to all Northern Europeans with their second home or permanent residence in Spain.
- Minimum property value € 300.000,-
- Anticipated loan amount: up to 90% LTV
- No age limit
- No income required
- No inheritance tax
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Finally the solution
Little or no income and little or no mortgage. This product gives you access to the equity tied up in you house and so financial liberty. The plan provides you with
"cash in hands” without the burden of repayment.
How does it work?
- A mortgage is secured on your property. A maximum loan amount of up to 90% of the market value of your property is released.
- The largest part of this sum (75%) is invested in a life insurance policy linked to investment funds of your choice.
- Your interest payments on the mortgage are covered by investments generated by the insurance policy (not guaranteed).
- The remaining part (15%) is available to take as a tax free cash lump sum.
- There is
no need for regular interest payments,
nor proof of income.
For example: a widow with a small pension, house value 800.000€. The interest-only-mortgage is 90% of 800.000€ = 720.000€. From the house value € 600.000 (75%) goes to the investment portfolio bond and 120.000€ (15%) goes to the widow. She is free to use this money (minus 2.5% start up and Notary Costs) however she wishes.
After seven years the 15% cash advance has been recouped by the investment, so you can release more funds.
Another advantage of this system is that when the widow herself dies and she has non-resident heirs. They are not liable for inheritance tax, as this is only applicable on the portion of the property which is debt free. I can assure you that inheritance tax here in the Comunitat Valencia is
not discharged for
non Spanish resident heirs. This will surely mitigate your liability to inheritance tax..
If you would like a quote please click http://casahipoteca.com/mortgage_quote
Lifetime Mortgage
A lifetime mortgage is designed to run for the rest of your life, this product allows you to release some of the cash tied up in your property without the upheaval of downsizing. If you are 60+ and would like to release some cash now, this product allows this without any repayments. This UK Building Society mortgage your property and release the cash to you, the interest then accumulates monthly with no repayments for the term of the mortgage. The mortgage is only repayable upon sale of the property, after death, or if the owner moves into long term care. This means you have an interest only mortgage on your property with the interest rolling up on a monthly basis, no repayments are required until the property is sold and there are no income requirements. The debt is lodged on your property and they have a no negative equity guarantee meaning you will never owe more than the property is worth.
The benefits to you are :-
1. Cash Lump Sum
2. No Repayments
3. Inheritance Tax is reduced
4. No proof of income required
5. You retain full ownership of the property
6. Any profit from sale will be paid to the owners or their beneficiaries
The minimum age for applicants is 60 years old with no maximum age limit, the maximum loan to value is 52% of the value of the property.
LIFETIME FIX EQUITY RELEASE OPTION - LTV’S
|
60 =
22%
|
70 =
32% |
80 =
42%
|
90+ =
52%
|
|
61 =
23% |
71 =
33% |
81 =
43%
|
|
|
62 =
24% |
72 =
34% |
82 =
44%
|
|
|
63 =
25% |
73 =
35% |
83 =
45%
|
* Maximum 2 |
|
64 =
26% |
74 =
36% |
84 =
46%
|
Borrowers |
|
65 =
27% |
75 =
37% |
85 =
47%
|
|
|
66 =
28% |
76 =
38% |
86 =
48%
|
** LTV based on |
|
67 =
29% |
77 =
39% |
87 =
49%
|
lower age |
|
68 =
30
% |
78 =
40
% |
88 =
50
%
|
|
|
69 =
31
% |
79 =
41
% |
89 =
51
%
|
|
If you currently have a mortgage and are able to prove your income, there is of course the option to re-mortgage. You can release some equity from your home and continue with a mortgage. There are several options available with terms varying, you can opt for interest only, repayment or a mixture or both. There are lenders who will cover the costs of transferring your current mortgage to them, or allow a cashback option which you can use towards these costs. Re-Mortgaging in Spain can be a costly business as this is treated as cancellation of your current mortgage and set up of a new one.
Please bear in mind that in Spain once you own the property any finance secured afterwards will be treated as a re-mortgage.
If you would like a quote please click http://casahipoteca.com/mortgage_quote
|
