Equity release on Spanish properties

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Equity release

Spanish Solutions offer Equity release on Spanish properties for seniors in Spain.

Many expats are struggling in Spain with the rising costs of living here, currency fluctuations, less spendability of their pensions or investments and in some cases family or medical issues too. 

Bare Ownership or Home reversion plans are now much more common in spain with 2,000 deals completed in 2019. 

With a plan such as this, an owner can sell their home in exchange for a tax efficient cash lump sum or a regular income. They reserve the right to stay there-  in their own home – rent free for life – for as long as they choose.  

When the client passes away or they enter long-term care in Spain, the house will be sold, and the investor will take their share of the proceeds.

The plan puts cash in our clients pockets right now. 

Cons of a Spanish Equity Release plan

  • It is not for everyone. 
  • These plans offer bad value if the client suddenly dies, shortly after taking one out.
  • The value of the inheritance clients leave behind is reduced. 
  • It is a delicate legal matter than must be handled by a professional law office. 
  • Spanish home owners will receive significantly less than the market value for their property. 

Pros of a Spanish Equity release plan 

  • A property owner  can take the money as a lump sum, regular payments, or a mixture of both.
  • The client can remain there, rent free for the rest of their lives.
  • Nobody ever needs to know the client has sold their home; there will be no “for sale” sign, no agents, no viewings etc. 
  • Yo can quickly have the cahs, generally within four weeks. 
  • All valuations are carried out by Tinsa. the Spanish national, independent valuation company. 
  • Money is in some cases, tax free. 
  • There are no upfront costs for the property seller. 
  • Spanish solutions are there to protect our sellers right through the process. 
  • No credit check or remortgage required. You cannot end up with negative equity and your heirs will never receive a bill, as can happen with Lifetime mortgage. 

If you think Equity release on your Spanish home is something that may interest you, please email Nicola in Spanish Solutions:

enquiries@spanishsolutions.net or check out our dedicated website, www.SpanishEquityRelease.Solutions.

78 Comments

  • mike butcher

    Dear Nicola – my wife and I have owned our Finca in Pollensa, Mallorca for 20 years and it is currently valued for retail sale a €495,000 – I am 75 and my wife is 73 years old so would be interested to hear what sum we could attract if we had a Bare ownership deal whereby the property would revert to the buyer after we both died. Our plan was to sell here and buy a cheaper property in Almeria but as we have lived here for many years we would prefer to stay put in the home we love in Mallorca.

    • Nicola Ryan

      Good Morning Mike,

      Thank you for your enquiry.

      We understand, we will contact you directly and forward further details of Bare Ownership to you. We look forward to speaking with you.

      Kind regards.
      Nicola

  • mike butcher

    Nicloa – a further small query please – my wife and I have been Spanish Residents for many years and are both in possession of the unwieldy A4 size Residency Certificates but my understanding is that we can now exchange these for small pocket size cards which would be far better but I cannot find how to obtain this new card so please advise. We live in Pollensa, Mallorca,

    • Nicola Ryan

      Good Morning Mike,

      This is a common question.

      The green residencia card took place of the green residencia certificate but they are both the same, only in different forms. To change to the card you would have to apply for the residencia again, there is not an option to exchange them, we are sorry. There is talk of Brits having to apply for their residencias again in order to be given a different type of residencia card but again, this has not been confirmed by the Foreign Office as yet. We would recommend waiting until this has been rolled out. We hope this helps.

      Kind regards
      Nicola

  • Rusty Lewthwaite

    Is it possible to have an equity release in Spain – and use the money in the U.k and for income support.

    • Ian C.

      Hello Rusty.
      Our Equity Release division has really taken off. We’ve teamed up with Fabrica de Fondos and we hope to actually be loaning money by the Autumn 2020.
      The hope is that Fabrica de Fondos will soon be offering mortgages and equity release to ex-pats exclusively through Spanish Solutions. FdF will offer our clients a typical 30% LTV on the value of their home. We are less concerned with the client’s income, age etc compared to the Spanish banks. In fact, a “typical” British client with equity in their Spanish home will absolutely be a perfect client for the product, once they reach some very simple criteria. What the client doe switch the money- Pay for around the weird trip, pay off their mortgage in the UK, pay for health care, whatever- It is not our concern.
      The short answer made long- Absolutely, you’ll be able to use the equity in your Spanish home as income support back in the UK.
      Please stay in touch and we’ll let you know when we get the go-ahead from the Bank of Spain to start lending.
      Kind wishes,
      Ian

  • Colin Alleway-Hayes

    Hello Nicola
    Is it possible to take out a fraction of the equity in my home or do I have to release it all?

    • Ian Barlow

      Hi Colin

      Spanish Solutions are in the process of obtaining the necessary licenses to be able to offer a range of Equity Release products (akin to those offered in the UK) across Spain.

      These will include re-mortgages and Reverse mortgages where a fraction of the property’s value is re-financed. We expect these products to be legalised and available by the turn of this year.

      The only option of equity release we can offer you at this moment is a product called Bare Ownership (usufruct).

      Bare Ownership (Usufruct) – Basics

      Depends on: – Number of persons on the deeds/Any debts outstanding on the property/Your age (minimum age is 65 years)/Any outstanding health issues/The independent property valuation/Location and other information like the condition of the property

      An investor will buy the property for 50-60% of the independent valuation which goes straight into your bank account to do with as you will.

      You will have a legally protected contract to live there rent free for the rest of your life or if you go into State healthcare.

      Kind Regards

      Ian Barlow

  • Robert Topham

    Bare Own­er­ship (Usu­fruct)
    my wife(67) and myself(69) are interested in the the Bare ownership (if available)
    Our property was purchased in 1995 for £80,000
    SENIJA,Alicante,03729
    current value ??250,000/300,000 euros
    joint ownership, no mortgage
    3 double bedrooms, 1 en suite shower room, family bathroom, dining room with kitchen, TV lounge in glazed naya. All on one level. Office, utiilty room and storage are in the under build. large fenced garden mainly laid to gravel (low maintenance) car port for two cars

    location
    https://www.google.co.uk/maps/@38.7339941,0.043219,70m/data=!3m1!1e3

    https://www.google.co.uk/maps/@38.7341127,0.0432833,3a,75y,182.14h,87.97t/data=!3m7!1e1!3m5!1sdBva1OnNTcijfFYALzxocA!2e0!6s%2F%2Fgeo1.ggpht.com%2Fcbk%3Fpanoid%3DdBva1OnNTcijfFYALzxocA%26output%3Dthumbnail%26cb_client%3Dsearch.revgeo_and_fetch.gps%26thumb%3D2%26w%3D96%26h%3D64%26yaw%3D165.6692%26pitch%3D0%26thumbfov%3D100!7i13312!8i6656

    • Jane

      Hi Robert

      Ian Barlow will be in touch directly with more information for you.

      Kind Regards

      Jane

  • Stan Bontoft

    We are Brit retired couple (I’m 68 and my wife 63)
    We intend to buy a small house for €140000
    On completion of the purchase, are we able to apply for equity release?

    • Jane

      Hi Stan

      A member of the team will get in touch with you directly.

      Kind Regards

      Jane

  • Vanessa Walford

    Hello,
    Me and my husband are both on the deeds for our home, I am 50 he is 69 would we be able to take equity due o my age?

    • Jane

      Hi Vanessa

      One of the team will be in touch with you direct.

      Kind Regards

      Jane

  • Hans Nielsen

    How is the Equity release in Spain, Im 80 yers of age!! Many thanks

    • Jane

      Hi Hans

      One of the team will be in touch with you direct with more details.

      Kind Regards

      Jane

  • Millie Munro Clarke

    We are interested in knowing more about equity release. Do we obtain our own valuations

    • Jane

      Hi Millie

      Our team will be in touch directly with further information.

      Kind Regards

      Jane

  • Eric and Norah Bond

    Hello.
    We would like an appointment with you to discuss Equity Release options.
    Thank you.
    Eric & Norah Bond

    • Jane

      Hi Eric and Norah

      Someone from the team will be in touch directly regarding your enquiry.

      Kind Regards

      Jane

  • Susanne Ellen Boulton

    Hi, we are aged 72 and 74 in joint ownership of a finca with market value of 150000 and an outstanding mortgage of 55000 and are wondering if we could get equity release with a mortgage. Regards. Sue

    • Jane

      Hi Susanne

      One of the team will be in touch directly to ask for more detail.

      Kind Regards

      Jane

  • Annie Robinson

    I’m interested in freeing up some of my property’s value to supplement my income. I had to give up work due to COVID-19 and struggle on my small private pensions. I’m 63 and own an apartment worth around 75,000€ Is there such a scheme for me?

    • Jane

      Hi Annie

      One of our team will contact you direct to get some more details.

      Kind Regards

      Jane

  • lesley clark

    I am a widower aged 71 and am interested in equity release

    • Jane

      Hi Lesley

      Julie will be in touch to get more information from you.

      Kind Regards

      Jane

  • Brent Grindrod

    Could you send me more details on equity re­lease. I am 51 bought property 10 years ago, it was then valued at 159,000 euro

    • Ian C.

      Hello Brent,

      Thanks for getting in touch.
      Spanish Solutions are currently working with a major Madrid based fund and we are offering out ex-pat property owners three main types of Equity Release. (with a few variations in each deal we’ve done)
      REAL ESTATE ANNUITY
      I guess this is similar to a UK equity release idea? The investor will assist you to improve your quality of life in Spain by receiving an additional income at the end of every month. We had some clients with very high-value property take this option.
      The major advantage is you will continue enjoying your home forever.

      BARE OWNERSHIP.
      This way, you will receive a lump sum of money at the beginning of the operation and you will continue to use your home for life. Your age is against you ion this one, so we can consider doing a timed deal. You will get a lump sum in Equity release and enjoy your home for ten years, for example, totally rent and cost-free.

      GUARANTEED RENT
      This works great. Do you want to sell your house and get rid of all the expenses of being an owner, yet never have to move out?
      With the Guaranteed Rent plan, you can do it without having to stop living in your home. You will become a lifelong tenant of your own home, paying a dramatically reduced rent for the time stipulated.

      The response has been terrific so far. It appears no high street banks are offering equity release and in fact, we are the only English speaking company who are currently involved in the sector.

      If you’d like to continue the chat, please send me your exact address. I also need to know your DOB and that of any other people on the property. We’ll do a free valuation and give you some proposals. Please send me also any information you can regarding the property that helps us to get you a good valuation- you know if it is a particularly good location on the community, you’ve done work to it, maybe added a few extras- anything like that.
      Spanish Solutions take care of the conveyancing and we charge you 500 euro for that process.

      best wishes,

      Ian

  • Graeme Clark

    Good afternoon. This is a tentative enquiry about ‘equity release’ on our property. I would like to know about the three different options mentioned in one post I read. We currently have our property for sale. But would be interested in information from you about the options you have published.
    My wife is 64yrs old. I am 62 years old.
    The property is on an urbanization in Moixenon 46640, Comunidad ValencIa. The address is c/ de la Ecología, 7. It is on Idealista and other platforms. We are asking €150,000.
    We have over the past 18 years made improvements to the property. Are legal permanent residents since January 2008.

    https://www.idealista.com/en/inmueble/89857394/

    • Jane

      Hi Graeme

      One of the team will be in touch with you directly to discuss this further.

      Kind Regards

      Jane

  • David Cannon

    I would like full details of the actual legal requirements of what we can and cannot and must do after we take out one of these schemes.

    • Jane

      Hi David

      One of the team will contact you direct to answer your questions.

      Kind Regards

      Jane

  • Linda Hurley

    I am interested in equity release. I am 68 years old. Please send me information. Thank you.

    • Jane

      Hi Linda

      One of the team will be in touch with you to provide information.

      Kind Regards

      Jane

  • Kay

    Hello,

    We are a couple living in our own property in Spain. If we enter into a bare ownership scheme, then receive the agreed amount from the investor, are we exempt from Capital Gains tax regardless of our ages?

    If so, how is this proven to the tax authorities?

    Also, if one of us leaves the property after the sale to go and live in a different property that they already own, would they then be liable to pay CG tax?

    Also, could you tell me where bare ownership properties are advertised for sale?

    Your advice will be very much appreciated.

    Kind regards,

    Kay

    • Jane

      Hi Kay

      I see from our records you are already dealing with Ian so I have passed your enquiry for him to reply to you direct.

      Kind Regards

      Jane

  • Karen Gordon

    Hi my names Karen. I’m nearly 68 years old. I live Mazarron. Murcia Spain. I own a property but need to release money for ensuite and generally for security in the bank. Could I have some information please.

    • Jane

      Hi Karen

      I have passed this to our Equity Release team who will contact you directly.

      Kind Regards

      Jane

  • ANTHONY ERIC GINGER

    Hi my wife and I are interested in eguity release in our property it is owed by me & is mortgage free I am 74 & my wife is 80 years young I belive the raterble valuation is between €500,000 to 600,000. But I feel I would need to discuss with you the pros and cons yours A. G

    • Jane

      Hi Tony

      Dave will contact you directly to discuss this further.

      Kind Regards

      Jane

  • Ian Osborne

    We are looking to release the equity in our fully owned property, we live in (inland) Andalucia. We are both 65 in the next few weeks.

    • Jane

      Hi Ian

      One of our Equity Release team has e mailed you direct for further details.

      Kind Regards

      Jane

  • Cathy

    Is equity release available in the canaries?

    • Nicola Ryan

      Good Afternoon Cathy,

      Yes, it is, we have many properties on the islands. One of our Equity Release handlers will be in contact with you shortly to discuss this matter further.

      Kind regards
      Nicola

  • May

    Is it possible to release funds from my apartment which is owned outright, at the age of 30??

    • Nicola Ryan

      Afternoon May,

      Thank you for your enquiry.

      Yes, this is possible. We will contact you directly to discuss this matter further, we look forward to speaking to you.

      Kind regards
      Nicola

  • Martin Howells

    Hello, I’m helping my father with a financial situation he owns outright a villa in ontinyent and would like to release a small amount of equity from it. Could I be contacted to discuss this?

    • Nicola Ryan

      Yes of course Martin,

      We will contact you directly to discuss this matter further.

      Kind regards
      Nicola

  • Leigh

    Please can you contact me, I am interested in equity release. Many thanks Lee

    • Nicola Ryan

      Morning Leigh,

      Thank you for your enquiry.

      Yes, of course, we will pass your details to the relevant department. The handler Ian Barlow will be in contact with you directly.

      Kind regards
      Nicola

  • Sandie

    Enquiring about equity release please

    • Nicola Ryan

      Good Morning Sandie,

      Thank you for your enquiry.

      Ian from JJC Capital Partners will be in contact with you shortly.

      Kind regards
      Nicola

  • carolyn sowden

    I live in England but have a holiday appartment which I own on the costa blanca.This is currently worth approx 60-70 ,000 euros.Just an enquiry.Would I be able to have equity release on this property.

    • Tracie Miles

      Hi Carolyn, my colleague will contact you under separate cover regarding Equity Release okay.
      Thank you
      Kind regards
      Tracie

  • Anne Bennett

    I’m making enquires on behalf of a friend who lives in Estepona and is here in the UK with me for a week. She is interested in an equity release deal on her apartment so I’m making enquiries on her behalf whilst she’s staying with me. We’d really apreciate some information and response from you. Thank you in advance.

    • Nicola Ryan

      Good Morning Anne,

      Thank you for your enquiry.

      We would be delighted to provide further information. Ian Barlow will email you directly to discuss this matter further. Should you have any further queries, please do not hesitate to contact us again.

      Kind regards
      Nicola

  • Glynnes Firth

    I am 71 years of age and own a flat in Altea Spain,is it possible to take a small amount of equity out of my flat for a short period of time please. I totally own this property and waiting for an inheritance on a Will,

    • Nicola Ryan

      Afternoon Glynnes,

      Thank you for your enquiry.

      Ian, our equity release agent, will be in contact with you directly to discuss this matter further.

      Kind regards
      Nicola

  • Laura

    I own a property outright and am interested in releasing a portion (around 20-25%) of the capital. Is this possible if I am not of retirement age?

    • Nicola Ryan

      Thank you for your comments, Laura,

      We will pass your details to our equity release handlers, who will contact you directly.

      In the meantime, should you have any further queries, please come back to us.

      Kind regards
      Nicola

  • Michelle

    Hi there
    My name is Michelle.
    I am 53 years old.
    I own a property in Spain.
    I do live in the property.
    It’s rather large.
    I am interested in knowing all my options regarding equity release.
    I have been living in Spain many years now.
    I was going to put it on the market to sell, but firstly I would like to see all the options open to me.
    Obviously I would like the idea of being able to continue living in my house as well as receiving a lump sum payment.
    Not too sure if I like the idea of renting my property though.
    I must add that I do not want a mortgage or to apply for any loans.
    Please could you advise me of all my options.
    Much appreciated

    Kind regards

    • Nicola Ryan

      Morning Michelle,

      Thank you for your enquiry.

      Your email was sent to our sister company JJC yesterday, we hope this helps.

      Kind regards
      Nicola

  • Patrick Vanfleteren

    good morning
    I am 66 my wife 61.. we own a detached villa with swimming pool… not mortgage free… we would like to know our options

    • Nicola Ryan

      Thank you for your enquiry Patrick,

      One of our equity release handlers will be in contact with you directly to discuss this matter further.

      Kind regards
      Nicola

  • Candice Curtis

    I have a property worth 850K with a mortgage 280K I am 44 years old. We also have a family property owned by a Gibraltar company shareholder myself and my mum 71 That’s worth around 1.5-2mil with no mortgage. Looking forward to knowing what we can access? Both properties are in the Malaga province. We want to renovate the properties possibly to sell or to keep and rent out depending on the deals available.

    • Nicola Ryan

      Thank you for your enquiry Candice,

      We will pass your enquiry to relevant department who will contact you directly to discuss this matter further.

      Should you have any further queries, please do not hesitate to contact us.
      Kind regards
      Nicola

  • Miss Ann Ball

    Hi, I would like some information on Equity Release in Spain please.

    • Nicola Ryan

      Thank you for your enquiry Ann, ´

      Yes, of course.

      Dee from our Equity Release partner will be in touch.
      They offer ex-pat clients deals that the high street banks in Spain cannot do.
      At Spanish solutions, we’ll be happy to help you with the legal work, assuming you find a deal you are happy with.

      Kind regards
      Nicola

  • Derek R. Taylor

    Hello.

    I am a mortgage-free homeowner,aged 70,and interested in releasing equity on my property.I live on an urbanisation in Pinar de Campoverde,CP 03191.I would like some specialist advice.Many thanks.

    • Nicola Ryan

      Thank you for your enquiry Derek,

      We will pass this to the relevant handlers dealing with this. They will contact you directly to discuss this matter further.

      Kind regards
      Nicola

  • Mark Daynes

    I am 67 yo retired and have some savings, I own a property in Alicante region approx value €135,000 and am looking to release equity in my home…… How much could I expect to get from this scheme…. Mark

    • Nicola Ryan

      Thank you for your enquiry Mark,

      We have passed your enquiry to the company dealing with this, who will contact you directly.

      Kind regards
      Nicola

  • Kate Glascoe

    Hello,
    I am 58 years old and would like any information on, and my options for equity release on my home valued approx 250,000 € – I live in the Malaga province. Thankyou in advance .

    • Nicola Ryan

      Thank you for your enquiry Kate,

      We will pass your enquiry to company dealing with equity release, who will contact you directly.

      Kind regards
      Nicola

  • Jen

    Hi, I own a property in Spain, mortgage free. I do not live there full time, I am a uk resident aged 64. What, if any options would be available to me?

    • Nicola Ryan

      Thank you for your enquiry Jen,

      We will pass your details to Equity Release Spain, who will contact you directly.

      Kind regards
      Nicola

  • David and Janet

    Hi,
    My wife and I own a property in El Raso 03140, currently valued at 170000 Euros, we are aged 80 and 82, would like to have more info please.

    • Nicola Ryan

      Thank you for your enquiry David & Janet,

      We will pass your details to the relevant department, who will contact you directly.

      Nicola

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