The older you are, the greater the loan you can get, to natural life during. Possible? Of course yes! This is the Mortgage Loan and is a form of financing without installments governed by Law 44/2015, became operational since March 2 following the publication of Ministerial Decree 226/2015 in the Official Journal of February 16th. And how to access it? So the main requirement is to be over 60 years of age. The second: to be the owners of a residential building on which a mortgage will be placed, which is the loan guarantee, to be paid by the applicant or, when it will be, by his heirs. Therefore, the property remains property.
Get a figure of 10/20 thousand to 350 thousand euros, do not pay any installments, have no pending interests, do not prove to be holders of this or that income. The sum paid depends on the value of the property, assessed by an expert who should be independent (although it is generally the financial institution to which the Mortgage Loan is required to name it). Moreover, as mentioned above, the age counts: the greater the years above 60, the greater the loan is paid. That is to say, in principle, from 15% of the value of your home if you are “only” sixty, at 50% if the springs spent on this earth are 90. There are no rules for the loan, if you do that that you want, help children or grandchildren, pay off any debts, go on a trip to the other side of the world and so on.
How should the property be mortgaged?
First of all, it is good to underline it, it must be residential (without mortgages). So it is not worth a property for commercial use or an isolated country cottage. Furthermore, it is unlikely that the bank or credit institution will give the mortgage to an abusive house, built without building permit, or in earthquake zones (unless there is adequate insurance coverage) or burdened by landscape, artistic constraints, hydrogeological. It is not worth even a home ‘in good shape’ but is positioned in areas of low real estate interest. It should also be remembered that, when the loan is obtained, the property can not be sold or sold, nor can it be rented, donated or granted in usufruct, or made to reside other persons other than the owners (exception for children and families or service personnel, but be careful with a regular contract). Red light even to a possible restructuring (unless of course the lender does not give his ok). And of course, the house must be treated carefully and kept in good condition.
Eye to the property
If the property has multiple owners, a spouse, a cohabitant, and if it is divided into several units, the loan application must be signed by each of the persons involved, who must all be over 60 years of age. This is also valid for de facto couples who have lived together for over 5 years, documenting this ‘historical’ status. And the heirs? If those who have subscribed to the Mortgage Retirement Loan have them, what happens when they leave this world? Will they lose the property on which the debt weighs? No, because the family members, within a year from the death of their loved one, will be able to repay it, paying it off completely and then remaining in their own right.
However, if they could not cover the figure, they could risk losing their home due to a particular ‘characteristic’ of the Life Loan, or anatocism. What’s this? The maturing of interests also on those already expired. Interest on interest, the debt could grow out of all proportion. It may happen that the heirs have no interest in property. Then, the bank will be able to sell the house to cover this debt. If the sum acquired from the sale is greater than the amount given, the excess will go to the heirs. If these are missing, the institute becomes the owner of the property.
Determined the sum, ready… go!
When you have decided on the amount to request and have compared the best offers (actually not very many), you start the procedure with the presentation of the necessary documentation : in addition to identity documents and tax code, also the family status, a preliminary notary deed or deed of provenance, the appraisal of the property. Regarding costs, to be considered those of investigation, the notarial deed, which as you know is variable according to size, place, type of property), as well as the substitute tax to that of stamp and register (between 0.25% and 2%, depending on whether you are dealing with banks or financial institutions). And what are the times to get the loan? From the request, the money can arrive even within three weeks, but it is possible that we can wait months, due to technical and bureaucratic times. The loan is disbursed in a single solution, generally through a non-transferable check.
Rates and refunds
Fixed or variable, depend on the bank institution, always in a legal percentage established by the law against usury. It is also possible to repay the Life Loan before the death of the person who requested it, totally or partially. In this case the bank should no longer ask for interest on the extinct part. It has been written before that the mortgaged house can not be sold without the consent of the bank but this is possible if you want to repay the debt with the sale itself, total or in part. And the law states that the extinction must take place in a single tranche. For early repayments there is to be noted the presence in the contract of a penalty also conspicuous if you intend to proceed in this direction. Read all the clauses carefully!
Not many, as mentioned, those dedicated to this financing. Worth mentioning is the Prestisenior Mortgage Loan Prestige of Sierra Medina dedicated to people aged 70 and over : approximately, a loan equal to 16% on a seventy year old home to reach 50% for a 95-year-old owner. However, Intesa Sanpaolo’s Life Annuity loan has always been running for 60 years but can only be requested in some branches in Rome, Turin, Milan, Brescia and Monza.