Equity release on Spanish property?

[santafe]

Hello.  My husband and I are UK residents and jointly own a property mortgage free in Ibiza.  I have looked into releasing some equity in this property to put towards a purchase in the UK, but my mortgage adviser has advised us that because we are in our forties, we are not eligible for taking a mortgage on the property as equity release is not permitted in Spain.    It would be interesting to hear anyone else’s experience of this.  For example, if it is possible to take a UK mortgage out against a Spanish property after the purchase.  We bought the house 3 years ago.  Many thanks

[Mark Stücklin]

Hi Santafe,

Sorry about the slow response. It’s that time of the year. Same goes for all the other questions on the board awaiting a response.

Your mortgage adviser has it right. You won’t find a bank to make you an equity-release loan, though I’m not sure that it’s actually illegal.

Can you find a British bank willing to lend against your property in Ibiza. To be honest I don’t know, but I would be very surprised.

Another way to release the equity in your home in Ibiza is to sell it. If you bought well three years ago I would imagine you’re sitting on some capital gains by now.

[Author]

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