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 but interest is rolled up.

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 value of the property. Amount released is increased by 1% for each year thereafter, meaning that a 70 year old person can receive 32%. The product has a “No Negative Equity Guarantee” provided by the Building Society who are regulated in the UK by the FSA – Financial Services Authority.

The rate is currently fixed at 7,25% for the whole term. The Mortgage can be repaid, however during first 5 years there is a 5% redemption fee, thereafter there is no early redemption fee. If you decide to sell and buy another property the Society may be able to arrange a new 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.

Completion of the mortgage will take place at a notary in Spain . It is required that you visit an Independent Lawyer who will be based near where you live wherever possible. The reason for this is that the Society wish to ensure that clients are fully informed both by their adviser and by a legal independent entity as to the nature of the commitment they are entering in to and will be signing for upon completion. This is for your own benefit and it will give you peace of mind.

The Application Fee, which covers the cost of the survey, will have to be paid prior to completion of the Lifetime mortgage and will not be refundable if the loan does not proceed. Payment for the Application Fee will be made directly to the lending Society and not to us. The lender requires us to meet with potential borrowers at a face to face meeting to provide clients with comprehensive advice about the product and to explore any suitable alternatives where relevant. We will be more than happy to come and see you and explain the product in more detail. We of course have to charge a fee for this, but no other fees are subsequently charged by The Loan Centre for the arrangement of the Lifetime Mortgage. The visit can be arranged in Spain as well as the UK.

Lifetime mortgages may be exempt from Stamp Duty for clients who are over 65 years of age and are tax resident in Spain. It is also possible that such clients may enjoy a reduction of 90% in the Land Registry and Notarial fees if you are aged 65 or over.