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Is Equity Release available in Spain

Posted: Sun Jun 13, 2021 11:39am
7 replies652 views4 members subscribed
Karl64

Posts: 85

19 helpful points

Location: Serón

Joined: 17 Jan 2018

Hi all, due to Covid and Illness I find that I need to access funds held in my home. I have had no help from the Government even though I am Autonomo and have been unable to work. This has dessimated my savings and left me with nothing to live on. I cannot get a mortgage or loan due to no income. My only asset left (apart from my car) is my home. It is fully paid and has no mortgage on it. I do not want to sell it, just access some of the money. Does anyone know if there are reputable equity release companies in Spain that will buy a portion of the equity in my house and still allow me to live there please?

lesqueenb

Posted: Mon Jun 14, 2021 7:41am

Posts: 19

10 helpful points

Location: Mojacar

Joined: 3 Jan 2021

Posted: Mon Jun 14, 2021 7:41am

Having been a financial consultant in the past I can assure you equity release is a glorified mortgage at more than double the rate of ordinary mortgages.  The debt piles up enormously, on your death there may be nothing to leave any relatives. Rent out your property in the UK and rent in Spain instead. You still have your asset in tact.

Karl64

Posted: Mon Jun 14, 2021 3:23pm

Karl64

Original Poster

Posts: 85

19 helpful points

Location: Serón

Joined: 17 Jan 2018

Posted: Mon Jun 14, 2021 3:23pm

lesqueenb wrote on Mon Jun 14, 2021 7:41am:

Having been a financial consultant in the past I can assure you equity release is a glorified mortgage at more than double the rate of ordinary mortgages.  The debt piles up enormously, on your death there may be nothing to leave any relatives. Rent out your property in the UK and rent in Sp...

...ain instead. You still have your asset in tact.

My only home is in Spain. If I had a home in Britain I would sell it. I cannot rent out or sell my home in Spain because a) it would leave me nowhere to live & b) the amount of taxes and fees I would end up paying would not leave me a lot left. It seems I am stuck between a rock and a hard place.

lesqueenb

Posted: Tue Jun 15, 2021 6:52am

Posts: 19

10 helpful points

Location: Mojacar

Joined: 3 Jan 2021

Posted: Tue Jun 15, 2021 6:52am

Karl64 wrote on Mon Jun 14, 2021 3:23pm:

My only home is in Spain. If I had a home in Britain I would sell it. I cannot rent out or sell my home in Spain because a) it would leave me nowhere to live & b) the amount of taxes and fees I would end up paying would not leave me a lot left. It seems I am stuck between a rock and a hard pl...

...ace.

Oh dear. I do not know anything about Spanish Equity Release products sorry.

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Lyn77

Posted: Wed Jun 16, 2021 10:33am

Lyn77

Helpful member

Posts: 608

367 helpful points

Location: Vera Playa

Joined: 25 Feb 2017

Posted: Wed Jun 16, 2021 10:33am

Go to see a financial advisor, lawyer, or english speaking estate agent.  Someone somewhere must be able to help.  Spain is no longer a 3rd world country is it?   Good luck anyway.  B

Beannie1

Posted: Wed Jun 16, 2021 3:38pm

Beannie1

Helpful member

Posts: 158

148 helpful points

Location: Vera Playa

Joined: 8 Mar 2020

Posted: Wed Jun 16, 2021 3:38pm

Have you made sure you aren't entitled to any benefits here in Spain? I'm sorry if I'm teaching grandie to suck eggs, but is there a possibility you might qualify for the minimum vital income scheme if you've paid sufficient autonomo and now have no savings or income?

I have to be honest I don't  know very much about the scheme, but I have seen references to it on the CAB spain website

Karl64

Posted: Wed Jun 16, 2021 4:46pm

Karl64

Original Poster

Posts: 85

19 helpful points

Location: Serón

Joined: 17 Jan 2018

Posted: Wed Jun 16, 2021 4:46pm

Beannie1 wrote on Wed Jun 16, 2021 3:38pm:

Have you made sure you aren't entitled to any benefits here in Spain? I'm sorry if I'm teaching grandie to suck eggs, but is there a possibility you might qualify for the minimum vital income scheme if you've paid sufficient autonomo and now have no savings or income?

I have to be honest I don't  know very much about the scheme, but I have seen references to it on the CAB spain website...

...

We were entitled to benefits but our Accountant was less than useless and was too lazy to find them for us. We are seeing our solicitor about denouncing her because we reckon that she has cost us a minimum of €10k in lost covid relief and benefits. Unfortunately we are not entitled to them retrospectively.

Andrew B

Posted: Sun Jun 20, 2021 2:26pm

Posts: 1

1 helpful points

Location: Arboleas

Joined: 28 May 2021

Posted: Sun Jun 20, 2021 2:26pm

Equity release is available in Spain:  https://www.spanishsolutions.net/blog/bare-ownership/equity-release-on-spanish-properties/

It is more expensive than a conventional mortgage, and the amount you can release is dependent on the age and sex of the owners; and there is a guarantee that you may remain in the property for as long as you live, or need to move out into long term care (in the UK anyway), even if the debt grows to more than the property value.  For full terms and conditions, contact a provider - and the link above is a random one that I found online, and am not recommending them or anyone.  Do take into account that you may not have an inheritance to leave regarding your property, when you die, or it may be greatly reduced, due to the lender taking their owed money from the value.  I am a qualified financial adviser in the UK (Chartered Financial Adviser, Fellow of the Chartered Insurance Institute, and in the past wrote financial services exams. including the first on Equity Release).  Do think very hard about taking money out of your owned home, and if you think it may suit you, contact a qualified adviser.  I am not giving any advice: only confirming that equity release is available in Spain.  Good luck! :-)

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