Annuity – A Pension For Life

What is an Annuity

Annuities are contracts that provide a fixed income stream for a person’s lifetime or a specified period of time.

The Real Estate Life Annuity is a contract, formalised in a Public Deed before a Notary, whereby the Elderly receive a monthly income for the rest of their lives, in exchange for the sale of the bare ownership of their home, but maintaining at all times the right of use and enjoyment.

It is also possible to request an initial lump-sum payment in the following

Annuity Options

Classic Life Annuity – A Pension for Life

The current homeowner(s) sells the bare ownership of the property for a percentage* of the market value in exchange for receiving a sum of money each month to boost monthly income and retains the “usufruct”, the right to continue to live in the home amongst their friends, in the community they have fallen in love with.

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Classic Temporary Rent

The current owner sells the bare ownership and maintains the usufruct of the home for life; however, the collection of the monthly rents will be made within a previously determined period of time.

Life Annuity Outside of the Home

The homeowner renounces the right to use the home, but in exchange receives a higher monthly payment than the classic life annuity.

This option is designed for clients who are unable to stay living in their homes, for example need residential care.

* The percentage offered to you will be based upon several determining factors. Primarily, your age(s), the type of property you own and its location and the product you are choosing

Some of the Annuity

Advantages

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Minimal fees to pay

During the sale, all fees related to the Notary’s Office, the Land Registry and taxes derived from the operation will be paid by the buyer (except for the Capital Gains Tax).

Reduction in monthly expenses

Once the bare ownership is sold you will only be responsible for paying for the contents insurance, household bills and the rubbish collection.

All other taxes and fees including buildings insurance will be paid by the buyer.

Rental Opportunities

You are perfectly entitled to rent the property out and receive income from it if you choose.

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Legal guarantees

All transactions are formalized before a public notary and registered at the Land Registry.

Contact Us

Speak to one of out friendly team – all estimates and proposals are free of charge.

(+34) 910 375 611

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