LIFETIME MORTGAGE FROM MANCHESTER BUILDING SOCIETY

FOR APPLICATION FORM AND A GUIDE HOW TO APPLY FOR THE LIFETIME MORTGAGE IN SPAIN
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FOR A BROCHURE OF THE LIFETIME MORTGAGE
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LIFE TIME MORTGAGES IN SPAIN

The Lifetime Mortgage is available to clients who are 60 years of age or older and who speak and understand English without hindrance. There must NOT be more than 2 owners of the property. The property can be registered on urban or "rustica" land.

We can arrange for capital to be released form you property enabling you to have a better quality of life. The funds can be used for any purpose including paying off existing mortgage.

There are NO monthly repayments. The interest is rolled up, which means that the equity in your property is used to pay for the mortgage.

Amount released is based on your age (the youngest person). For a person of 60 years of age we can assist with 22% of the current Bank Value of the property. Amount released is increased by 1% for each year thereafter, meaning that a 70 year old person can receive 32%. There is a “No Negative Equity Guarantee” in place by the British Financial Entity who completely adheres to regulations set up by the FSA - Financial Services Authority.

The rate is EXTREMELY favorable. It is currently fixed at 6,99% for the whole term. Mortgage can be repaid. The first 5 years it carries a 5% redemption fee, afterwards 0%. You can also sell and buy another property and take out a Lifetime Mortgage on the new property. For example you may wish to down size or move to a more suitable property which has better access for any disability you may have. If you move the Lifetime mortgage to another property there is no redemption fee.

Completion of the mortgage will take place at a notary in Spain . It is required that you visit an appointed solicitor who will be near you, however appointed by the bank. The reason for this is because the bank is obliged to follow rules set up by the FSA and it is important you will be info informed by a legal independent entity exactly what it is you will be signing for upon completion. This is for your own benefit and it will give you peace of mind.

There are only 2 costs you will have prior to completion. These are the valuation fee and the cost of the solicitor. Arrangements have been made with a network of solicitors throughout Spain and the fee for the visit will be 200€. The valuation fee starts at 300€ and is increased according to the value of your property. Both fees are subject to Spanish IVA. Payment for the above will be made directly to the Financial Entity and not to us.

Lifetime mortgages will not attract Stamp Duty and will have a reduction of 90% of the Land Registry and Notarial fees if you are aged 65 or over.

If you would like information please e-mail us or phone us.