Equity release in germany ?

SeniorSam

Can anyone tell me if there is such a thing as Equity Release in Germany?

I have a relative in northern Germany, my English Sister in Law married to an Austrian, who have a substantial detached house, possibly worth around £800,000 and they wish to enquire about this.

Any help would be appreciated.

Sam

Conrad

Sam I own some flats in Germany in a Town called Penkun by the Polish North East border and in the recent past did consider rasing finance against them. My partner is a German Lawyer.

There is equity release in Germany. The valuation is based on a German property I assume.

As they already live in Germany I'm not sure why you are enquiring on a UK website?

SeniorSam

Conrad wrote: »

Sam I own some flats in Germany in a Town called Penkun by the Polish North East border and in the recent past did consider rasing finance against them. My partner is a German Lawyer.

There is equity release in Germany. The valuation is based on a German property I assume.

As they already live in Germany I'm not sure why you are enquiring on a UK website?

Thanks Conrad,

I saw my relatives only in the last few days when we all met up for a family wedding and the discussion came up then.

My broyther-in-law seemed to think that the equity release scheme - mortgage euiity release with no repayment until death, was not available there. He is under the impression that the banks will lend but only on the basis of buying the home and that is not what they want.

The home was built by them about 35 years ago and is a substantial detached property in a village and having recently retired, thought that an equity release schem may be worth looking into.

Can you let me have any more details, possibly a contact firm please?

Thanks

Sam

Conrad

Well I have a German broker, but to be frank there are hundreds of German Banks. Thier local regional Bank would be a good place to start.

Equity release per see, without payments migh not be possible, but in any event I find some smart clients prefer and ordinary mortgage as this can be had at lower rates. On top of the sum they wish to aquire, typically the payments are also borrowed - in effect the same operation as traditional ER, only lower rates and more control.
Interest only is tyipically more suitable.

Ok so we dont know how long they will live, so only estimate the term payments will be required over, but as a worse case I guess they could borrow a sum of payments sufficient to take them to 110 years of age!

SeniorSam

Many thanks Conrad,

I will pass on the info and trust it will help them.

Much appreciated

Sam