According to the Act passed in Congress in Spain (November 2007) BOE 294 of December 8, Law 41/2.007 called reverse mortgage, reverse or the reverse mortgage loan or credit secured by mortgage on immovable property or which constitutes a housing floor applicant's usual and provided they meet the following requirements:
- That the applicant and that it can designate beneficiaries are aged less than 65 or suffering from severe or high dependency unit;
- That the creditor has the amount of the loan or credit by regular or unique provisions (income)
- That the debt is only callable by the creditor (bank or cash) and enforceable security when the borrower dies or, if so stipulated in the contract, when you die the last of the beneficiaries and that the mortgaged property has been appraised and insured against damage in accordance with current regulations. "These are statutory requirements to be covered in the meeting have rights law and tax benefits, as of course can be set free reverse mortgage transactions between the bank and the beneficiaries under conditions different.
To keep things simple, the reverse mortgage is a special loan, whereby fees are not paid and instead charged a monthly rent. The amount of rent to be charged with a reverse mortgage depends on several factors such as housing value, age of the person contracting the loan and your spouse) and the choice is made to receive an income life or only for a specified period. The entity that gives a reverse mortgage, you can not demand repayment of accumulated debt (the total of the income that have been collecting and counting) until the owner dies or the last of the beneficiaries of this credit will be reflected as the contract. With this system, the elderly, can receive a monthly income and not lose ownership of your home that is what most often worry about them.
In this sense, the law foresees the following: the death of the mortgagor his heirs or, if so stipulated in the contract, the death of the last of the beneficiaries, may cancel the loan on time, paying the mortgagee all the debts due, plus interest, without the creditor may demand compensation for the cancellation. "Thus, the heirs of the owners either do not lose their property rights and the death of the owners can choose from stay on the floor, obviously paying the outstanding debt, making a new mortgage to replace the reverse mortgage to free up debt and even holders to sell and keep the remainder.
Our conditions for reverse mortgage:
Option A: Reverse Mortgage Up to 80% of the appraisal (limit € 650,000) initial provision of up to 20% of the appraisal with a maximum of 100,000 €. Fixed rate 5.90% Income from temporary or Temporary Annuity Income:
- Age 65 years client temporary income for 20 years
- Age 70 years 18 years income
- Age 75 years 15 years income
- Age 80 years 12 years income
- With 85 years of age 8 years income.
- From 5 years to 89 years.
Once the deadline is Euribor plus 2% until the death of the owner. Mortgage subsidized credit, no stamp duty costs, provided that the client is registered in the home that is taken as collateral. You can sell the house anytime. You can rent it.
Option B: Amount - 70% of the appraised value.
- Time - From 65 to 90 years.
- Possibility of an annuity contract from 90.
- Arrangement fee - from 0.15% (in nominal value of mortgage)
- Benchmark interest rates depending on the age of the owners as sections:
- 65-69 years younger holder at the time of recruitment
-70 To 74 years of the youngest owner at the time of recruitment
- 75-84 years younger holder at the time of recruitment
- 85-89 years old the youngest holder at the time of recruitment
- Differential to apply: Euribor + 2.5% from 90 years to the youngest holder dies.
These conditions may improve depending on the profile of the customer and the amount of the mortgage. We can make a study of the case without commitment or cost to you if you leave us your details via our contact form
In this sense, the law foresees the following: the death of the mortgagor his heirs or, if so stipulated in the contract, the death of the last of the beneficiaries, may cancel the loan on time, paying the mortgagee all the debts due, plus interest, without the creditor may demand compensation for the cancellation. "Thus, the heirs of the owners either do not lose their property rights and the death of the owners can choose from stay on the floor, obviously paying the outstanding debt, making a new mortgage to replace the reverse mortgage to free up debt and even holders to sell and keep the remaining
Another advantage is that in the event that the proceeds of the sale, the financial institution is unable to collect any debt, and the heirs did not want to face it, the bank can only charge so far to reach the assets of the estate .
Y And if you wish, we can arrange to process your mortgage reverse mortgage or euros and change the mortgage you currently hold. It is sufficient to fill the via the contact form where you can answer your questions. You can leave your doubts or questions on the board mortgages. We offer the best mortgage offer traditional currency or there at all times.
