First of all, let’s say that the mortgage loan is a long-term credit product, the beneficiaries are those over sixty years who own a residential property, to which they have access to a loan of a certain amount agreed with the bank or some other intermediary financial. The sum must be repaid after the death of the beneficiary, or through the heirs or through enforcement.
In short, the mortgage loan is a possibility to obtain liquid capital from your home (or in any case from another residential property owned) in old age. The capital as mentioned above, will then be returned after the death of the beneficiary or of his spouse or cohabitant.
The characteristics of the mortgage life loan
This particular type of loan originated in Britain in the late nineties of the twentieth century with the name of ” lifetime mortgage ” or ” equity release ” (and ” reverse mortgage ” in the United States). In Italy it was introduced precisely in 2005 by paragraph 12 of the art. 11- quaterdecies of Decree-Law No. 203 of that year, converted into Law No. 248 of 2005.
It is important to underline that the mortgage can be made only on the residential building, that is on those goods that are destined to be used as a civil dwelling, or that are pertinent to it. The application of the mortgage life loan has not been very successful in practice, this because in the aforementioned rule, there was no regulation that was introduced later by the Decree of the Ministry of Economic Development No. 226 of 2015, which came into force on 2 March 2016.
The fact is that the rule is clear, and the loan can be granted by banks or financial intermediaries regularly registered in the Register held by the Bank of Italy pursuant to art. 106 of the Consolidated Banking Act (TUB) contained in Legislative Decree No. 385 of 1993, and must guarantee a medium and long-term loan by holding as a guarantee the first degree mortgage on a residential property owned by the funded entity, with capitalization annual interest and expenses, which is suitable for individuals over the age of 60.
It is good to point out that the reimbursement can be asked to the heirs in a single solution, only upon the death of the financed subject, that is to the debtor as soon as the properties or other real or personal rights of enjoyment on the property are transferred in whole. property given as collateral, or even if actions are taken that considerably reduce their value.
Even if the law does not explicitly communicate it, it is obvious that the lender, before granting the money to the applicant through the mortgage annuity loan, makes an estimate on the value of the property by an expert. We must also analyze the case in which the applicant to be financed is married or cohabiting ” more uxorio ” for at least five years, in this case the contract by law must be signed by both even if the property is only one of them, obviously both spouses must be at least 60 years of age.