Mortgage annuity loan

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Life Loan: what it is and how it works

You mortgage your home, with a regular contract, with a credit institution and you get cash to live decently when you are in serious difficulty like the one we are experiencing.

There are no repayments for the repayment of the debt as it will go into Succession and the Heirs will decide whether to renounce the inheritance or redeem the mortgaged property by paying the debt over the interest accrued contractually.

To all intents and purposes it is intended as a supplementary pension !

The owners of the building, which must be over 60 years old, do not lose possession of it, and convert part of its value into euro, in currency, with the ignition of the mortgage as collateral in favor of the Credit grants the Life Loan .

 

It will be an assessment of the property and the age of the owners who will determine, based on life expectancy, the maximum amount obtainable.

After the death of the owner or owners the Heirs will decide what to do, if:

Life Loan: what it is and how it works

  1. Extinguish the debt directly with the Credit Institute;
  2. Sell the mortgaged property and with the proceeds pay off the debt;
  3. Ask the Bank to proceed with the sale of the mortgaged property and with the proceeds pay off the debt and if the amount is higher the remainder will be divided between the heirs.

The Ministry of Economic Development will have to adopt within three months from the entry into force of the Law the Regulation which must establish the rules relating to the offer of the Mortgage Loans and the identification of cases and formalities that lead to a significant reduction in the value of the property for what reason the Institute will have the right to request full repayment of the loan.

Abi and Consumer Associations will be heard for the drafting of the Rules .

The new regulation will be valid for loans stipulated only after the entry into force of the new legislation.

 

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