JJC Capital Partners are the leading and most recent entrant into the equity release sector in Spain
The process is supervised and approved by the Spanish land registry, we use teams of Spanish lawyers, coordinate with the Spanish banks in some cases and sign up investors from official lending channels. Yet still, some people don’t realise the downsides. Here are some points to note.
Things to consider before signing up for equity release
1. Equity in your Spanish home is reduced if you take out equity release
Often, depending on the package you decide on, an investor will purchase your home equity at a discounted rate (less than market value).
Of course they are not going to pay full market value because in exchange you get the rights to live there forever. We can help you to work out how much you’ll save over the future years.
2. Sale and leaseback property transactions require you to pay rent on the home you just sold
This rent is not particularly high, and as above not near to market value.
What is allows is for you to remain living there forever, with even more cash in the bank.
3. You need to seek independent financial advice before entering into a fractional property transaction
This is not something to be taken lightly. You may need to seek independent legal representation before entering into an equity release contract.
4. Equity release products can be difficult to understand especially as we are in Spain
We make it as clear as we can for our investors and sellers, but you still need to pay attention.
5. There are few products
The Spanish banks just don’t want to know about expats living in Spain with cash flow issues.
We offer three main products, sale and leaseback, viager and bare ownership. We keep it as simple as we can.
6. Equity release is limited to Madrid, Barcelona, Valencia and the main sites
With many Spanish funds and investors, JJC capital partners are the only firm currently offering the service in Alicante, Costa Del Sol, Palma, Tenerife, Lanzarote and other non-Spanish regions.
7. Often you don’t know what the actual cost of the equity release product/scheme is
This can be due to a few factors which we will not know until we drill deeper into your personal circumstances. For example:
- Is your pool licenced?
- Is the certificate of habitation in place?
- How much will the bank charge you for cancelling a mortgage?
- Are you employing a lawyer who has never done this before?
We will give you a breakdown of costs as soon as we have the full information.
8. Your circumstances and financial views might change as you age
buying a Ferrari now might seem like a good idea. It might not be in a few years!
We really advise our clients to talk to their family before taking out an equity release option in Spain.
9. In an Annuity deal or Viager deal you receive a lump sum now (maybe 20% of the total value) plus a monthly pension top-up for life
It is terrific to help our clients to plan and not blow their windfall immediately on receiving it.
This is not suitable for someone looking for a big cash injection immediately. You need to discuss this option with us.
There are numerous advantages to taking Equity Release in Spain
From protecting your heirs from inheritance taxes; the security of never having to move; having cash now while you can enjoy it; clearing debts to help you sleep better at night; home improvements; having money to spend on your family.
If you contact JJC Capital partners however we want you to be aware of the two sides of the coin. If you do decide to release some of the liquidity in your Spanish home, we believe that we are the very best company in Spain to deal with. We are quick in assessing your situation and we give fair and decent offers to our clients. We explain how we arrive at these offers and we want our deals to be wins for everyone.
Contact JJC Capital Partners today for a free quote.