The mortgage loan is a form of financing reserved for those who have already turned 60 and owns real estate . Those who turn on this type of financing without installments do not lose ownership and are not required to leave the house.
With the life loan the applicant can have a sum of money not exceeding approximately € 350,000 for which he will not have to pay any installment or interest for the whole life.
The amount received is guaranteed by a mortgage on the home , or on a property not yet mortgaged.
The amount that can be requested changes according to the value of the property and the age of the applicant: the greater the age, the greater the percentage granted will be. In particular, older people have the possibility to request up to 50% of the value of the property.
The requisite requisites for the request are:
The life loan is a non-finalized loan ; in fact, those who receive it will be able to dispose of the money as they wish.
Interest on the debt and related expenses are capitalized; they must be repaid only following the death of the subscriber, except for voluntary early repayments.
On the death of the owner, the eventual heirs will have two alternatives to make the repayment:
To request an annuity loan, the amount obtainable must be calculated, determining a satisfactory sum of one’s liquidity needs. This first step is important for determining the right solution or not, or to assess whether there are other more suitable solutions, such as the sale of bare ownership or the assignment of the fifth salary or even the pension.
For an annuity loan, an amount up to 50% of the value of the home is generally financed, depending on the age of the applicant.
In a rough estimate, the bank could finance an amount equal to 10% of the property value for the sixty year olds, 20% for the seventy years old, 40% for the octogenarians and, finally, 50% for the ninety.
It is then necessary to identify potential lending institutions, evaluating the appropriateness of the loan, taking into account both the interest rate applied and the substitute tax.
During the procedure for applying for an annuity loan, all the documents for the evaluation of the loan by the bank must be collected. The documents are:
After having made the necessary checks, after a few days from when the application for an annuity loan is presented, you will receive a first reply from the bank, which will give preliminary notification of its feasibility opinion.
An acceptance or a refusal at this stage does not imply a final decision: acceptance must be confirmed in the following steps, but the refusal could refer to the amount that the credit institution might judge to be excessive.
The bank will make a further assessment before signing the contract, through a technical assessment of the property with the purpose of having an estimate of the value and the state of conservation. This appraisal is performed by a trusted technician of the credit institution, with costs that are usually borne by the applicant.
Finally, the contract is stipulated which is the deed that defines the conditions stipulated between the bank and the holder of the Mortgage Life Loan. Since this is a public act, it must be signed before a notary; the mortgage is then entered on the property and the money is disbursed. At that time, the bank or the bank will give the contractor a check with the non-transferable clause of an amount equal to the agreed amount, net of any expenses that are borne by the subscriber.
From that moment the holder of the loan will be able to do what he wants of the amount received and can continue to live in his own property with respect for certain constraints : the property can not be sold, rented, renovated, nor can a second mortgage or offer it as a guarantee to third parties.