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Equity Release on your Spanish home

Posted: Wed Nov 30, 2022 5:36pm
5 replies270 views8 members subscribed
Kimmy11

Kimmy11

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Hi all,

Fairly recently, another member was asking about whether Equity Release schemes are available in Spain.  I can't find the original post, so I thought I'd make a new post with a heading that I hope will be found easily in the search bar.  This article is from the tax advisors I use, Abaco:

https://blog.abacoadvisers.com/releasing-the-capital-on-your-house-in-spain/

Kind regards,

Kim

Madcatwoman

Posted: Wed Nov 30, 2022 5:49pm

Madcatwoman

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Posted: Wed Nov 30, 2022 5:49pm

Thanks very much for the information Kim.

As my long term partner and I have no dependents and are recently mortgage free we were thinking of maybe doing this in the years to come.

Stephanie86

Posted: Thu Dec 1, 2022 12:20pm

Stephanie86

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Posted: Thu Dec 1, 2022 12:20pm

As a point of consideration, these need to be viewed quite ruthlessly. When I was toying with this idea to finance my mother, I talked to a friend, English, but completely bilingual who has been in professional business here for 40 years. Having recently retired he investigated several firms offering this, obtaining multiple quotes. They were all similar. He has a large and valuable property in a sought after area, with high professional valuations. The finance he was offered was derisory in comparison with his property and the conditions onerous. He decided against going ahead because of this.

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Dean50

Posted: Fri Dec 2, 2022 5:06pm

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Posted: Fri Dec 2, 2022 5:06pm

I have no knowledge of spanish equity law so i can't actually comment but if its anything like uk please please dont do it , my freinds mother and father did it in uk unbeknown to my mate , it was 12 years ago and borrowed 45k on a value of property at that time £265,000 which was hugly less in my opinion to what should have been given , anyway you have to stay in the house until either death or if to go into long term care home , sadly my freinds father passed away 5 years ago and his mum just couldn't live in the house ss was quite large and i suppose memories, anyway she called provider and in no uncertain term said the value as it stands was £135,000 after just 8 years on borrowing £45,000 but then if she wanted to sell they would require an additional £30,000+ sorry just can't remember exactly but sure you get idea which is what  the equity release company expected them to stay longer in the house when original agreement made , she did sell the house for just under 300k and only received about 125k cash , absolutely disgusting and as much as my freind tried there was nothing he could do , it did end ok as him mam did find a lovely bungalow ad is extremely happy there but each time she sees advert on tv for equity release she wants to throw anything at it as it is so upsetting  , like i say this is std practice in uk do just ensure you check, check and check again if doing it in spain  

Dean50

Posted: Fri Dec 2, 2022 5:19pm

Dean50

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Posts: 43

82 helpful points

Location: Villena

Joined: 29 Jul 2018

Posted: Fri Dec 2, 2022 5:19pm

Dean50 wrote on Fri Dec 2, 2022 5:06pm:

I have no knowledge of spanish equity law so i can't actually comment but if its anything like uk please please dont do it , my freinds mother and father did it in uk unbeknown to my mate , it was 12 years ago and borrowed 45k on a value of property at that time £265,000 which was hugly less in ...

...my opinion to what should have been given , anyway you have to stay in the house until either death or if to go into long term care home , sadly my freinds father passed away 5 years ago and his mum just couldn't live in the house ss was quite large and i suppose memories, anyway she called provider and in no uncertain term said the value as it stands was £135,000 after just 8 years on borrowing £45,000 but then if she wanted to sell they would require an additional £30,000+ sorry just can't remember exactly but sure you get idea which is what  the equity release company expected them to stay longer in the house when original agreement made , she did sell the house for just under 300k and only received about 125k cash , absolutely disgusting and as much as my freind tried there was nothing he could do , it did end ok as him mam did find a lovely bungalow ad is extremely happy there but each time she sees advert on tv for equity release she wants to throw anything at it as it is so upsetting  , like i say this is std practice in uk do just ensure you check, check and check again if doing it in spain  

Sorry as mis quoted on my earlier message , it was in fact 12 years before my freinds father passed away as i said it was 12 years ago which may have looked like 12 years from today sorry for error 

Cwaller

Posted: Tue Dec 6, 2022 9:40am

Posts: 12

3 helpful points

Location: Villamartin

Joined: 4 Sep 2021

Posted: Tue Dec 6, 2022 9:40am

Dean50 wrote on Fri Dec 2, 2022 5:06pm:

I have no knowledge of spanish equity law so i can't actually comment but if its anything like uk please please dont do it , my freinds mother and father did it in uk unbeknown to my mate , it was 12 years ago and borrowed 45k on a value of property at that time £265,000 which was hugly less in ...

...my opinion to what should have been given , anyway you have to stay in the house until either death or if to go into long term care home , sadly my freinds father passed away 5 years ago and his mum just couldn't live in the house ss was quite large and i suppose memories, anyway she called provider and in no uncertain term said the value as it stands was £135,000 after just 8 years on borrowing £45,000 but then if she wanted to sell they would require an additional £30,000+ sorry just can't remember exactly but sure you get idea which is what  the equity release company expected them to stay longer in the house when original agreement made , she did sell the house for just under 300k and only received about 125k cash , absolutely disgusting and as much as my freind tried there was nothing he could do , it did end ok as him mam did find a lovely bungalow ad is extremely happy there but each time she sees advert on tv for equity release she wants to throw anything at it as it is so upsetting  , like i say this is std practice in uk do just ensure you check, check and check again if doing it in spain  

The sensible way to go with Equity release l think, is to pay the interest each year and the debt then stays at the same amount taken.

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