The proprietor keeps utilization of the property up to demise at which big date the property is sold together with bank refunded

There can be particular labeling confusion out of country to country. In the united kingdom, equity release are something also known as a face-to-face home loan. The consumer gives the identity of its property towards bank in return for a lump sum payment and/or a normal stream of repayments regarding financial. It is a famous way of enhance old-age earnings. Very French finance companies do not bring the merchandise yet although there’s a customer course so you’re able to request it.

During the France, security launch otherwise cash-out refinancing was speaking about home financing where in actuality the financial brings your bucks and also you pay it off in the monthly payments. If your property already features that loan an excellent, financing need to be refinanced at the same time. The whole mortgage together with cash-out shouldn’t surpass 70%.

Ability to pay off is understood to be full month-to-month obligations payments that dont surpass several 3rd out-of regular monthly income. Unfortuitously French banking institutions will not offer a guarantee release so you can combine almost every other bills to reach this package/step three obligations to revenue proportion once integration.