Progressive Part Ownership/Equity Release
Could you be enjoying the cash locked in your Spanish home right now, while retaining the majority ownership of your home?
Cash lump sum, with no monthly payments.
Unable to get a Spanish bank to give traditional Equity Release?
Perhaps you’re worried about your financial situation in Spain but you are not comfortable with giving up full ownership of your home here in exchange for a Bare Ownership deal.
Senior Living Spain are offering our expat clients Progressive Part Ownership.
You can receive a lump sum and either choose to make monthly payments to us in the form of rent, more about that later. Or simply roll the amount forward. You’ll have the option to pay the debt off whenever you wish or simply allow the money you owe to the investor to accumulate and never pay us back anything! You have total control as to what happens- if you have a windfall, simply pay us what we invested plus our rental return and buy back full ownership of your home. Your kids will have that option too after your day, if that is something you wish to make provision for. In a nutshell:
Let us help you to free up cash to:
• Take a holiday.
• Clear existing debt
• Fund home improvements
• Finance a college degree or wedding for your children.
• Pay medical bills.
• Have a safety net of cash in the bank, if you need it.
Never, ever fall into a situation whereby your heirs owe more than what the house is worth.
We are offering a hybrid of an usufruct and simple equity release with next to zero costs for the homeowner, and an option to make absolutely no repayments until such time as they pass away, sell the property or move into state care.
What Progressive Part Ownership is not.
• This is not remortgaging- We are not a bank and besides, the Spanish banks are simply not providing equity release for our clients in 99% of cases.
• This is not a purchase- You still own your home and you can stay there for as long as you wish.
• This is not a traditional bare ownership, in fact, it is not a traditional real estate product.
Senior Living Spain Equity Release Solutions are not a bank and importantly we are not lawyers, please feel free to take independent advice.
If you are over 60 and you own your own home here in Spain, you can access tax free cash on that asset. Your home in Spain is perhaps the biggest asset you own, why not take advantage of the wealth you have sitting in bricks and mortar?
Senior Living Spain have spent the last 9 months sourcing finance from a wide range of providers and we think that Progressive Part Purchase is a service that thousands of our expat clients will want to look at.
Why do we think the Spanish ex pat market wants and needs Progressive Part Purchase?
We receive an enquiry every hour from a potential client asking us how they can get equity release, keep ownership of their property and still potentially have something to leave to their children or heirs when they pass away.
Here’s how it works.
1. Contact Senior Living Spain Equity Release Solutions and fill in the basic application- Address of the property, approx valuation the property, a short summary of your finances - any debt we should know about etc.
2. Meet a broker online or in person who will give you a breakdown in euro and cents of how much you can potentially put into your bank account.
3. Tinsa, (www.tinsa.com) Spain's national and most trusted valuation company will give you an independent valuation of your property. (This is the only up front cost to you- 300 euro approx)
4. We receive the valuation from Tinsa within 3 days.
5. Your assigned broker will make you an offer, which you accept or decline. *
6. If you accept, we talk you through the paperwork and arrange a notary appointment as soon as possible.
7. You choose the repayment option- Monthly rent of say 200 per month ** or just roll up the costs and we’ll receive it from your estate when it is eventually sold.
8. In the notary, we explain the terms and conditions once more- nobody wants any hidden costs to appear or unwelcome surprises.
9. If you are happy, we purchase 30% of the property and write you a cheque there and then.
10. The deal is registered in the Spanish Land Registry, signed and stamped by the notary and witnessed by legal representation.
11. You start to enjoy the cash you’ve released without selling your property, having to move home or get involved with the cumbersome Spanish Banking system. We pride ourselves on not being a financial institution- We are very much a property focused company, protecting our clients and their heirs.
*what will the offer look like?
Progressive Part purchase involves our investor buying 30% of your home in exchange for 30% of the valuation. Let me give you an example: Tinsa values your apartment in Cabo Roig, Cabo De Gata or Cabo de Palos today, post CoronaVirus, at 150,000 euro. We can work all over Spain naturally.
We vet the right investor for you from our portfolio of funds and bankers. The investor purchases one third of your Spanish home for 45,000 euro. (Costs include IVA tax at 10%, Notary & Land Registry 1,500 euro, Set up fee 500 euro, Commission 500 euro) You will receive a cheque for 38,000 euro. Our legal partner Senior Living Spain Solutions will offer PPP clients a discounted rate for wills, NRT payments etc
You can pay off the debt whenever or never.
Although we are not a bank- it is not unlike the formula used in Equity Release.
Let's say you choose “never”. We simply rollover the money owed. Using the example above, and your payments are 7.5% per annum of 45,000 - After year one you’ll owe us 48,375; after year two 52,003 and on it goes. We take insurance to ensure you never owe more than the value of your home and we are never going to force you to sell it.
An easier way to explain is that after year one, the investor effectively owns 32.5 % of the property, after year two 34.6% etc.
If you feel better paying back the 7.5% fee monthly, we’re delighted to accept it. Your call.
Do you want to sell your property and move? That's fine, once we get paid, we’re more than happy to help you.
Do you need to go into care? Use the equity remaining on your property to fund it.
Do you want to leave your home to your heirs? Sure, please do. We’ll help them to buy us out or to sell the property to a third party- We get what we’ve loaned you returned plus the rental fee , they get any and all remaining balances.
**(based on a property in Cabo Roig, 03189 value 150,000 May 2020)
What happens with negative equity?
Just imagine in these uncertain times, the value of your property drops dramatically. Your previously 150,000 home is now selling for 100,000 euro. Even though we purchase 30% of the value of the property, there is a minimum amount that the Progressive Part Purchase is valued at- the principal loaned and the 7.5% accumulated. We ensure you never owe more than the property is worth on today’s market remember.
So, is equity release in Spain something you need to do right now?
Why not get in touch with Senior Living Spain Equity Release Solutions and talk to us about various options.
Please remember we also deal with all major banks- We can present your case to Bankia, Bank Inter and Banco Sabadell.
We can also find you a traditional bare Ownership. We can offer reverse or reversion mortgages through our Bank of Spain registered partners.
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