Equity Release Scheme

16 posts in this topic

I am living in Schleswig-Holstein now. My partner and I own our house with no mortgage on it. Is it possible to find a German company that offers an Equity Release service (i.e. lend us money now and they get the house when we die)? We both have no family to leave property or money to, so equity release would be perfect.

0

Share this post


Link to post
Share on other sites

Yes, such services do exist indeed - it is not something many in Germany know yet, though.

 

I am just shutting office down now for a few days and hence I won't be for a while to give you details and info, but if you send me an email I can certainly pass on some preliminary info in my spare time early in January to this regards.

 

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
0

Share this post


Link to post
Share on other sites

hi there. i am in need or maybe just in want of an equity loan based on my houses.. my situation is a bit different and even though I'm fluent in German I can't seem tp find any data on it.

 

long story short I just got my permanent residence card a few months ago (non eu citizen) been in DE 5years

 

bought a mehrfamilienhaus about 3 years ago for 280k plus provision and taxes. got a loan for 241k through diba. since then the rental returns have gone up about 250 euros per month.

 

bought into a denkmalschutz construction middle of 2011 worth 340k plus tax got a 100% loan for it. moved in 2months ago but the site isn't complete so I haven't got the tax break yet. I need to show the endgültige bescheinigung which is only issued once all the houses and gardens are finished.. should be early this year. to get the loan (surprisingly through sparkasse ) they evaluated my MFH and said its got a street value of minimum 440k.

 

I have a full time job open ended contract with a 2year secracy clause meaning if I quit or they fire me I get 6months serverance and 70% salary for 2years as a reward for staying out of the industry.

 

I have a few private loans totalling about 35k that are high interest and high capital down payment.

 

I just started a GmbH on the side that cost a bit and also I need to pay off the very expensive kitchen for the house I just bought.

 

question. would I be able to borrow atleast the 35k or possibly much higher amount offset against my MFH that is worth 200k more than the amount I owe? (they calculated the street value as the lowest sales price in that area per sqm that year of 1000euros. average sales price was 1300. my MFH has 440sqm of rentable apartment area plus cellar in good condition.

 

do you know if I need to do it through diba? or are there other services I can use? would appreciate some feedback before I make an appointment to my usual finance broker (who is conservative as hell and tries to talk me out of stuff , but is also Good ).

 

cheers.

0

Share this post


Link to post
Share on other sites

Does anyone know any more about equity release? What do they call it here? Do you have to stay living at the property?

 

Many thanks

0

Share this post


Link to post
Share on other sites

Do you guys mean this?

Equity Release

 

You'll need to talk to a financial advisor *points above*, but I'll mention

a few ways of getting money in Germany based on real estate, there are more.

All are complicated but do work:

 

- Leibrente

Very basically speaking, a bank or person pays a monthly sum to you while

you stay living there. After you decease, property belonges to payer.

This is specialized legal stuff, needs pro help to set up, but is done in Germany,

especially by the elderly/ people without heirs.

 

- Bausparkredit

I did this once myself - this is a loan from a financial institution called Bausparkasse

(not a normal bank) based on your real estate as security. Also tied to a plan of saving

up part of the loan over a few years as the down payment, but loan can be procured immediately.

Usually, the money is intended for use with the real estate (repairs, building), but is

not as restrictive as it used to be.

This *really* needs someone to explain all the ramifications to you, I am just pointing it out.

 

- Regular bank loan:

I am pretty sure you can use real estate as security for a banl loan, but might be more

expensive (in interest) than the Bausparkredit.

 

Go talk to somebody!

Germany is the land of financial dealings, you definitely will find a solution.

0

Share this post


Link to post
Share on other sites

German word is "Umkehrhypothek"...and not many offer that.

 

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
0

Share this post


Link to post
Share on other sites

My situation is a bit different in that my property is located in Scotland.

I am officially resident in Germany.

Does anyone on TT know of a UK or German company that will remortgage / buy to let mortgage or loan on this.

There is no outstanding mortgage and it is tenanted.

0

Share this post


Link to post
Share on other sites

As the last posting on this subject is more than two years old I thought I would provide an update on the position. 

 

A couple of months back I decided to investigate equity release.  Specifically, I was thinking of a deal where someone gives me a shed load of money now for the right to take my house when I no longer need it (i.e. when I die).  For the rest of this posting I will refer to this sort of deal as a Lifetime Mortgage. 

 

Despite considerable research, aided and abetted by Starshollow, I have been unable to find any Bank or financial institution prepared to offer anything like a Lifetime Mortgage.  I have found some institutions willing to talk about me drawing a pension from the equity, but that is not what I was looking for, so I didn't take it as far as a formal application. 

 

Many thanks to Starshollow for his excellent service and good advice.

 

Hope this helps. 

0

Share this post


Link to post
Share on other sites

Thank you SpiderPig.  This idea could help someone, but it's not something that appeals to me at the moment. 

0

Share this post


Link to post
Share on other sites

Moin

I have got a question about equity release  is there a possibility to get it here in Germany the same as in England . When I went on to Mr Google I could not find anything only that you can equity release ( Kapitalfreisetzung)   for businesses. But I would like to use on my house..

0

Share this post


Link to post
Share on other sites
On 30/11/2017, 09:37:04, starkebogen said:

As the last posting on this subject is more than two years old I thought I would provide an update on the position. 

 

A couple of months back I decided to investigate equity release.  Specifically, I was thinking of a deal where someone gives me a shed load of money now for the right to take my house when I no longer need it (i.e. when I die).  For the rest of this posting I will refer to this sort of deal as a Lifetime Mortgage. 

 

Despite considerable research, aided and abetted by Starshollow, I have been unable to find any Bank or financial institution prepared to offer anything like a Lifetime Mortgage.  I have found some institutions willing to talk about me drawing a pension from the equity, but that is not what I was looking for, so I didn't take it as far as a formal application. 

 

Many thanks to Starshollow for his excellent service and good advice.

 

Hope this helps. 

Wouldn't that be a reverse mortgage? Baby Boomers love them!

0

Share this post


Link to post
Share on other sites
15 hours ago, Rushrush said:

Wouldn't that be a reverse mortgage? Baby Boomers love them!

Yes, that would be it ---but there are no banks offering that in Germany. There are 1-2 "foundations" which will kinda purchase your house, offer you life-long living rights plus some ongoing pension payments, but it is all rather complicated and not even close to what is being offered in other countries to this regards.

Cheerio

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
0

Share this post


Link to post
Share on other sites
On 1/15/2020, 12:31:24, Starshollow said:

Yes, that would be it ---but there are no banks offering that in Germany. There are 1-2 "foundations" which will kinda purchase your house, offer you life-long living rights plus some ongoing pension payments, but it is all rather complicated and not even close to what is being offered in other countries to this regards.

Cheerio

 

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.

Thanks, that's kind of what I figured. My wife and I are pretty much set for retirement, the biggest change we made was downsizing to a smaller place, bit tight at times but dirt cheap to live there. Well it will be in 2 years when the mortgage is paid for

0

Share this post


Link to post
Share on other sites

I happened to come across an interesting offer a few months ago.  Somebody was selling their home for a discounted rate but would remain as tenants and pay rent.

 

I don't know if they managed to do this, but if I was an investor then it seemed like a good deal to me.

So it seems that there are people for offer this independently, although it was done via an Immobilien agency.  So you could look into this.

0

Share this post


Link to post
Share on other sites
On 1/15/2020, 12:31:24, Starshollow said:

Yes, that would be it ---but there are no banks offering that in Germany. There are 1-2 "foundations" which will kinda purchase your house, offer you life-long living rights plus some ongoing pension payments, but it is all rather complicated and not even close to what is being offered in other countries to this regards.

 

I wonder why this is not popular? In the case of a rising house price market, this is a guaranteed return for an investor.

Worse case they have to remove the 'old' house and rebuild, so the value is minimum the land value.

 

At least in the UK, as a house owner, in comparison to a renter, you get screwed in terms of being counted as having assets which you are forced to give to the nursing home to pay for nursing care. Had you just rented all your life and spent that mortgae money on holidays, you can simply claim poverty. In such cases, I can entirely understand why older people would cash in the value of the property whilst they were alive.

 

In Germany, you have to pay for nursing case as part of the social taxes, so maybe this is not so much of an issue, but I assume you get stung by inheritance taxes or the like.

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now