Alicante Lawyers
LOGO MAPFRE

Reverse mortgage for expats aged 65 and over

A solution that lets you enjoy the present whilst thinking about the future. Because living with peace of mind is also part of your legacy

Increase the value of your home in Spain without selling it. If you are an expat aged 65 or over and need additional liquidity, a reverse mortgage offers a practical and secure way to generate income from your property whilst continuing to live in it. This loan solution provides you with a lifelong monthly income so you can enjoy your retirement with peace of mind, retain full ownership and avoid unnecessary stress.

At Pellicer & Heredia, we help older people explore this option with legal clarity and personalised support. Our reverse mortgage services review each case to ensure that the terms are fair, transparent and tailored to your needs. This enables you to make informed decisions about your future with complete confidence. perpetual annuities to enjoy your retirement with peace of mind, retain full ownership and avoid unnecessary stress.

Would you like to find out more about our reverse mortgage service?

If you are over 65 and own a property in Spain, we can help you explore your options with clarity and legal certainty. Contact us today and one of our solicitors will guide you through the process in a personalised consultation.

In which country do you currently reside?

What is a reverse mortgage?

This is a financial solution designed for homeowners aged 65 and over who wish to access additional income without selling their property. In Spain, the Santander-MAPFRE model allows you to receive monthly payments backed by the value of your home. You remain the owner, continue to live in the property and do not have to pay anything during your lifetime. When the time comes, your heirs will decide how to repay the loan: by selling, refinancing or using their own funds. In any case, the repayment amount will never exceed the market value of the property.

How does it work?

This is a financial solution designed for homeowners aged 65 and over who wish to access additional income without selling their property. In Spain, the Santander-MAPFRE scheme allows you to receive monthly payments backed by the value of your home. You remain the owner, continue to live in the property and do not have to make any repayments during your lifetime. When the time comes, your heirs will decide how to settle the loan: by selling, refinancing or using their own funds.

Benefits for foreign retirees and older homeowners

  • A guaranteed lifetime income, providing you with a monthly annuity based on the value of your home.
  • Continue to live in your own home with complete freedom.
  • Tax-free payments. The money you receive from a reverse mortgage is tax-free.
  • Their heirs will not be obliged to take on unpayable debts; they may choose to sell the property, keep it or renounce the inheritance.
  • You can choose to receive the funds as a monthly income, as a lump-sum payment, or a combination of both, up to 10% of the valuation on the day of signing plus the monthly income, bearing in mind that the monthly income cannot be less than €350 per month.
  • Improved quality of life and financial peace of mind, thanks to a solid financial foundation that allows you to enjoy your retirement in greater comfort.

Benefits for heirs

Many customers wonder whether their children will lose the property. With a reverse mortgage, the property remains part of the estate and is only settled after the owner’s death. At that point, the heirs have various options protected by law:

  • Keep the property, either by paying off the debt with your own funds or by taking out a new mortgage.
  • Sell the property and keep the remaining amount, once the mortgage and interest have been paid off.
  • Decline the inheritance if you are not interested, without taking on any personal debt.

His heirs will always have the final say and will be protected by current legislation.

Requirements and documentation

This type of loan, aimed at older people and pensioners in Spain, is designed for very specific circumstances, which ensures its security. To be eligible for all its benefits, you must meet the following requirements:

  • Be aged 65 or over (maximum of two cardholders).
  • You must own the property and it must be your main residence in Spain.
  • The property must not have an outstanding mortgage or any significant encumbrances.
  • The property must be worth at least €150,000.
  • The property must be in good condition and located in an urban area.

Simulation example

Imagine a couple in their 80s who own a property in the 03540 postcode area, valued at €350,000. They want to improve their quality of life without selling their home or having to move.

Thanks to the Santander MAPFRE reverse mortgage, you can receive a monthly income without making repayments and whilst retaining ownership of your property. Life annuity with insurance

  • Guaranteed monthly income: up to €762
  • Duration: lifetime
  • Includes annuity insurance
  • Single insurance premium: €30,152.00
  • Loan repayment term: 13 years

This solution allows you to supplement your pension with complete peace of mind, knowing that you will be able to continue living in your home and that your heirs will retain control of the property in the future.

How can we help you with your reverse mortgage application?

We offer comprehensive support throughout the process, combining financial clarity with real estate legal advice for expats. Our goal is to protect your interests from the first consultation to the final signing and beyond.

1. Initial face-to-face consultation

We assess your situation and answer all your questions with complete transparency and with no obligation. We ensure that you meet the eligibility criteria and help you understand whether this solution is right for you.

2. Detailed financial proposal

You will receive a clear comparative report setting out the amount you could receive, the interest terms and how the debt will develop over time, so that you can make a fully informed decision.

3. Independent legal advice

Our solicitors will go through the proposal with you in detail, explain the fine print and analyse the tax implications. We make sure every clause is easy to understand, free from jargon and presented with complete honesty.

4. Fast processing and approval

We handle all communication and paperwork with the financial institution. Thanks to our partnership with MAPFRE, your application is processed quickly and given priority.

5. Assistance with signing before a notary

One of our bilingual solicitors will be on hand to ensure that everything is in line with the agreement and to translate or clarify any terms.

6. Ongoing monitoring and family support

We are here to assist you with any further formalities you may need to complete. We also offer support to your family members or heirs when it comes to settling the mortgage. Ongoing support and assistance for your family

Pellicer & Heredia: legal advice on transparent reverse mortgages

A service backed by industry leaders

Transparent and independent advice

Specialists in senior expatriates

A comprehensive legal, tax and property approach

A warm and personalised service

Proven experience and trustworthiness

Make sure your retirement in Spain is peaceful and financially secure

Your home could be the key to enjoying the lifestyle you’ve worked so hard to achieve. Let us help you turn your asset into peace of mind, with a transparent, guided process and legal support you can rely on every step of the way.

Questions about reverse mortgages in Spain

To be eligible for a reverse mortgage, you must be at least 65 years old and the legal owner of the property being used as collateral. Some products may require both owners to meet this age requirement if there are two owners.

The amount depends on your age, the value of your property and the terms offered by the lender. The older you are and the higher the value of your home, the more you will be able to receive: either as monthly payments, a lump sum, or both.

You remain the legal owner of the property for the rest of your life. The property is used as security for the loan, but you are not obliged to sell it or move out.

Yes, you can sell the property at any time. However, the outstanding debt must be paid off at the time of sale, either using the proceeds from the sale or through another source of funding.

If the property is no longer your main residence (for example, if you move into a care home), the reverse mortgage may become due and payable. This depends on the terms of your contract, which we will go through with you in advance.

No. In Spain, payments received from a reverse mortgage are not considered income and are therefore not subject to personal income tax (IRPF).

If there are no heirs, the lender will sell the property after your death to recover the loan. Any remaining value after the debt has been repaid will go to your estate or to the State, depending on your legal situation.

Yes. Their heirs may choose to keep the property by repaying the loan, either using their own funds or by refinancing. They also have the option of selling the property or refusing the inheritance.

You can cancel the contract, but this usually involves repaying the full amount received, plus any interest accrued. It is important to carefully review the cancellation terms before signing, which we help you to do as part of our legal service.

Additional legal services for foreigners wishing to live in Spain

Companies and businesses

Family

Banking

  • Mortgage loan review
  • Mortgage floor clause
  • Claim back your mortgage expenses
  • Refund of advance payments on off-plan properties
  • Purchase of mortgage loans
  • IRPH (Mortgage Loan Reference Index)

Civil and Criminal Law

  • Debt recovery
  • Claims and complaints
  • Consumer and user rights
  • Inheritances and donations
  • Criminal law