Menu Close

Requirements for a reverse mortgage

In UK many talks about the financial product called “Reverse Mortgage”, but how much is really known?

It is normal that there are questions about this product and today we clarify some frequent doubts such as: What does it consist of? What requirements are needed to access this loan? Does it have tax benefits?

Reverse mortgage: It is a financial operation designed for the elderly, and consists of converting the value that your home represents into money, without losing ownership rights.

Who can request it? In UK, it is only available to people over 65 with their own home or with a 33% disability.

What is the taxation of the Reverse Mortgage? The amounts received for the Reverse Mortgage are not considered an income, therefore, they are not taxed.

Requirements and procedures to access the reverse mortgage
Be over 65 years of age
Resident in UK
Owning a home

No outstanding charges (the mortgage can be used to cancel previous charges)
First home – habitual residence
Housing in urban centers (value> 150,000 Euros)
With heirs
Depending on each entity, there may be additional requirements

Let’s see with this image the contracting procedure for a reverse mortgage!

An additional source of income with the reverse mortgage

While a reverse mortgage may not be the best option for some homeowners, for others, it has benefits to take advantage of.

A person who owns a fully paid home may not have enough income to lead the lifestyle they want. You may also be interested in Ravenwood Santander Finance Products
Therefore, a reverse mortgage can help maintain financial independence while keeping your family’s future in mind.

In fact, these reverse mortgage loans convert the value of your property into money, without having to sell it.

Reforms in your home with the reverse mortgage

Do you want to reform your house? But, are you one of those who make real efforts to live off the pension?

Now you can make those improvements in your home, using your home as collateral.

In fact, with the modality of reverse mortgages, the bank lends you money that is generally returned after death.

It is money that you receive without having to sell your home and with the possibility of transmitting it as an inheritance.

Make your home profitable with the reverse mortgage
The reverse mortgage offers you some financial freedom, which means that you can do whatever you want, including much-needed home improvements.

In addition, this loan for the elderly will allow you to convert part of the value of your home into monthly payments, tax-free.

Later, it will be your heirs who will be in charge of paying off the debt, a debt that will always be less than the value of your property.

Your heirs have several options:

They can sell the home, pay off the debt, and keep the difference.
They can sign a new mortgage to pay off the debt.
They can pay off the debt with their own money and keep the home.
Taking out a reverse mortgage is possibly one of the most important decisions of your life, and we want to make sure you make the right decisions every step of the way.

Óptima Mayores will carry out a free study for you to determine what will be the amount you would receive with your Reverse Mortgage, offer you real solutions tailored to your case.

Posted in General

Related Posts

This site uses cookies. Find out more about this site’s cookies. GOT IT!
scroll to top