In these challenging financial times, a lifetime loan (LTL) is a life jacket that offers a financial opportunity that not many borrowers are aware of. It is a type of loan available only to resident senior citizens. It allows senior owners to release equity from their homes enabling them a source of extra income every month. You do not have to repay the loan during your lifetime, and you may continue to live in your home for the remainder of your life. That is why this service is ideal for expat senior citizens living in Spain, as it nicely complements any pension cover you may already enjoy, allowing you in your twilight years to live a (very) comfortable life without being burdened by money issues.
This is a very niche financial service that is only aimed at residents in Spain. Please contact our company directly if you’re interested and want to know more.
Definition
A Lifetime Loan is a special type of home equity loan for senior residents. It allows owners to release equity from their homes converting it into cash by placing a charge (mortgage) against their property (which acts as collateral). The loan does not have to be repaid during a homeowner’s lifetime.
Who qualifies for a Lifetime Loan?
- Be resident in Spain.
- Be 65 years old, or over.
- The property must be your main home (not a holiday home).
How’s the loan paid?
- In lump sum, all in one go.
- In monthly instalments.
- A combination of the two above.
Payout chart
The following chart gives you an idea on what you can reasonably expect to be paid out. It follows a sliding scale, so the older you are, and the more your property is worth, the higher the payout. In the below chart I only show the payout either as a lump sum or in monthly instalments, but you could also choose a combination of the two if this suits you more.
|
| Payout (€) |
|
Property value (€) | Age | Lump sum | Monthly |
200,000 | 65 | 50,000 | 200 |
200,000 | 80 | 78,000 | 600 |
|
|
|
|
500,000 | 65 | 120,000 | 500 |
500,000 | 80 | 195,000 | 1,500 |
|
|
|
|
1,000,000 | 65 | 240,000 | 1,000 |
1,000,000 | 80 | 390,000 | 3,000 |
Pros
- You get to decide how and when you want the loan paid out. You are in control.
- The loan does not need to be repaid during your lifetime, only after you pass away. You have peace of mind.
- You may continue to live in your home for the remainder of your lifetime unmolested. You are independent.
- Attaining this loan does not impact your lifestyle in any way other than improving it. You deserve it.
- You get to decide how and when to spend the loan, no strings attached. You have freedom.
Are there any restrictions on what can be done with the loan?
None. You are free to use the loan as you see fit. For example, some borrowers use it to pay for home improvements, others to travel the world, and others to finance expensive medical treatments.
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