A simple solution
This is where the lifetime mortgage comes in. It is a type of equity release, a loan secured against your home, that allows seniors to live their best life! It is a scheme that enables you to obtain financing on your real estate assets, while retaining full ownership of the property.
How does it work?
The amount of the loan is determined by the real estate valuation of the property and the age of the borrowers. The repayment of capital and interest is made on the death of the last borrower by the proceeds of the sale of the property or by the heirs. There is nothing to pay during the lifetime of the mortgage besides an annual fee of €40. The loan can be paid off early if desired, either partially or in full. The setup costs are added to the loan amount.
Who can apply?
This is available to single people or couples from 65 years old to 84 years old on application (subject to a medical certificate for the over 80s), retired or working. The loan can be made on your primary residence, second home or a buy to let property. The mortgage cannot be secured against plots of land, commercial property or chateaus. You must be resident in France and own a property in France before applying.
The borrower must have a minimum income of €1,300 per month for the duration of the loan. For a couple, the minimum is approximately €1,733.33 per month.
How much money can be released?
You can borrow between 40% and 50% of the property value depending upon your age. The minimum loan is €50,000.
What projects can be funded?
Whether your dream is to head off into the sunset in your new motorhome, sail the seas in your own boat, visit the wonders of the world or to help younger members of the family with their studies, this loan can make it a reality. The only exceptions are investment in further real estate or financing professional projects. You can also use the lifetime mortgage to pay off an existing personal loan or mortgage.
If this sounds like a good opportunity that would suit your circumstances, contact an HB Mortgages French mortgage adviser to further explain the loan, the fees, and to discuss all your options for a brighter future today.
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