Lawyer Raymundo Larraín Nesbitt explains the pros and cons of lifetime loans, also known as “reverse mortgages”, as they exist in Spain.
Lifetime Loans, despite being relatively well-known and accepted in Anglosaxon countries for decades, are only just getting started in Spain. Back in 2006, acting on behalf of a foreign Lender, I was one of the first lawyers to formally introduce them.
It wasn’t until the fall of the following year, with the amendment brought about by Law 41/2007 to the all important Mortgage Act of 1981, in which for the first time a Spanish Law ruled on this “new” financial service. Even so, it brushed on it ever so lightly, almost in a shy fleeting manner, in its Additional Dispositions. Reserving the brunt of the regulation for future legislation. Here’s hoping.