What it is and how it works
The lifetime mortgage loan is a loan reserved for the elderly over 60 who have a property right over a house or residential property.
In practice it is a long-term loan granted to people at least 60 years of age , which is secured by a mortgage on the home of residence.
In Italy it is an alternative to the bare ownership of the building and allows the elderly to obtain a credit, and therefore money liquidity, without losing the ownership of the house.
Unlike the bare ownership, however, with the annuity mortgage loan, the borrower does not lose ownership of the property and is not required to leave the home .
Furthermore, in the event of the beneficiary’s death, the possibility of recovering the property is not precluded to the heirs . The heirs may in fact decide to recover the property by repaying the credit to the bank in a single payment and to extinguish the mortgage or to have the property sold to the bank, thus extinguishing the debt.
Law and Regulations
The relevant legislation is contained in Law 248/2005 (“Conversion into law, with amendments, of the decree-law of 30 September 2005, n. 203, containing measures to combat tax evasion and urgent tax and financial provisions”) , on the website of the Chamber the complete text: http://www.camera.it/parlam/leggi/05248l.htm
This law was then amended on March 19, 2015 (“Amendment to article 11-quaterdecies of the decree-law of September 30, 2005, No. 203, converted, with amendments, by law December 2, 2005, No. 248, on the subject of regulation of the lifetime mortgage loan “), the full text is available on the Senate.
In practice, the new legislation has added paragraphs 12-bis to 12-sexies to article 11-quaterdecies, paragraph 12 of Law Decree n. 203 of 2005.
The new regulations apply to Nick Carters stipulated after the date of entry into force of the standard. All the details for the offer of these Nick Carters will be decided by a regulation of the Ministry of Economic Development.
The new discipline has lowered the age required to apply for the Nick Carter mortgage annuities from 65 to 60 .
The events that may give rise to the full repayment of the debt in a single solution have been specified, that is: the death of the beneficiary of the loan, the transfer of ownership of the property, the performance of acts that reduce the value of the house or any other real rights of guarantee in favor of third parties.
It is also possible to agree on the methods for repaying interest and expenses , instead of paying them all at the end of the loan. In this case, the annual capitalization of interest is not envisaged.
The bank can terminate the contract due to late payment when the delay has occurred at least seven times, even if not consecutive, between the 30th and the 180th day of the installment expiration.
Mortgage on the house
The lifetime mortgage loan is secured by a first degree mortgage on residential property , which cannot be registered simultaneously on several properties owned by the financed company.
Banks that supply it
Which banks grant lifetime mortgage financing? This type of loan can only be provided by banks, credit institutions, companies and financial intermediaries referred to in Article 106 of the Consolidated Banking Act , ie those authorized and entered in the public registers.