Equity Release: A European Comparison

The scope of services in the Home Equity Release market is very diverse and differs from country to country. The services are known under different names in different countries.

The market for equity release products, which enable homeowners to access some of the wealth tied-up in their property, is expected to grow across Europe with the potential for over 20bn euros to be released each year.

What is an annuity

Some Equity Release terms across Europe

  • Venta de nuda propiedad – (Bare Ownership) and Renta vitalicia inmobiliaria – (annuities estate) in Spain
  • En Viager – (for the lifetime) in France
  • Leibrente – (Annuity) in Germany
  • Hypotekspension – (Mortgage pension) in Sweden

Across Europe, there is growing concern that the costs of providing for the ageing population will be prohibitive. The number of people aged 65 and over in Europe is estimated to exceed 120 million by 2030 and the proportion of the younger population supporting them is expected to decline.

Given the changing demographic profile across Europe, public finances in European countries will struggle to support current, or future, levels of pensioner needs.

For most people, their house is the most significant investment they will make over their lifetime.

Many elderly people now hold a large amount of wealth in their property, making them asset rich, but cash poor. Equity release products are a viable option to access this wealth.

Equity Release demand is increasing

Although equity release products are most common in the UK and Ireland, there is significant demand across Europe, particularly in countries such as Spain, Germany, and France where the population aged over 65, the majority of whom own their own homes, will rise dramatically.

Several social, economic, and demographic factors are driving the growing need for Home Equity Release. The combination of falling birth rates and rising life expectancy means that around the globe the proportion of the population aged over 60 is rising rapidly.

There is a growing ‘Pensions Gap’ between what is available (from state-sponsored and private pensions) and what is required to fund people in their retirement.

Already in many countries current pension and public health care arrangements are not sufficient.

The cost of providing public benefits to people over the age of 60 will grow steadily as the proportion of the population made up of older people grows.

Trust in JJC Capital Partners

JJC Capital Partners are the first Equity release company working with expats from all over Europe who own homes in Spain.

We speak your language and can explain a variety of options that are available to you depending on individual circumstances. If you are looking to release capital from your Spanish home, please contact us for more information.

We work together with independent appraisal companies approved by the Bank of Spain and the CNMV (the Spanish Government Agency responsible for the financial regulation of the securities market in Spain)

All operations are documented in the Spanish land registry and are formulated in a public deed before a notary, thus guaranteeing your security and peace of mind.

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