Equity Release in Spain


This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of Mark Stücklin Mark Stücklin 8 months, 3 weeks ago.

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  • #189332
    Profile photo of Mark Boston
    Mark Boston

    dear Mark ,

    my wife and I live between London and Barcelona and have owned a duplex apartment in Diagonal Mar . Are there any reputable equity release schemes for British  nationals who own property in Spain . With best wishes Mark Boston


  • #189355
    Profile photo of Mark Stücklin
    Mark Stücklin


    This is what a mortgage professional I have consulted has to say:

    Equity release in Spain is more complicated than in Britain. It may be possible for a long standing and loyal customer if funds are re-invested in Spain (another property, a business, etc.). In any event the bank would not finance 100% of the new project or property value but part of it, irrespective of the value of the security, so for example:

    – Existing unencumbered property worth € 500,000
    – New property or business project investment: € 300,000
    – The bank may consider financing part of the new project, perhaps € 150,000 or € 200,000.
    – Mortgage subject to status and valuation.

    So it matters a lot why you want to take equity out of the property, and how you plan to spend the money.

    Another mortgage expert told me it’s the same story with pretty much all banks in Spain. They will only write an equity-release mortgage if the funds freed-up are used for another property related investment in Spain, not just so you can get your hands on some cash.

    Does that help?

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