International Property Equity Release

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International Property Equity Release

If you are considering the purchase of an off plan development where finance is not available, "equity release" may be a viable option. Put simply "equity release" is a way of releasing the value in your home.

How to calculate the equity in your home:

Market value of property - (minus) debt on property = (equals) Equity available

Example

  • Your property was bought 10 years ago for 100,000 Euros, with a mortgage of 60,000 Euros

  • Property re-valued at 225,000 Euros, 50,000 Euros remaining on mortgage

  • The Equity in your property is 225,000 Euros - (minus) 50,000 Euros = (equals) 175,000

  • You would have 175,000 Euros equity available for future

    • Age is the primary factor when considering the value that may be released from your property. A person of an older age would be offered a higher percentage value of their home, than a younger person as they are not expected to live as long. There is no maximum age for an equity release plan, however it is less common for those under sixty to gain approval.

    Important factors to consider:

  • Equity release plans are not government protected

  • Make sure that your equity release plan has a negative equity guarantee. That means that if your property decreases in price, your debts are lowered to match the new property value.

  • Beware of hidden charges. Make sure that you know what additional fees may are payable

  • The property is yours for Life

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