LUIS

Our Lifetime Usufruct and Income Solution -LUIS- is a proven concept where you exchange the ownership of your property in return for a lifetime pension (monthly guaranteed payments for the rest of your life) + a lifetime usufruct (the legal right to stay in the house for the rest of your life). You will also have the option of choosing a combination of initial lump sum and monthly pension (the initial lump will be limited to a maximum of 8%-9% of the value of the property).

Besides receiving an income and enjoying lifetime usufruct rights, you will also be saving money as some expenses in relation to the property will be taken over by the buyer.

There can be many reasons to enter into a LUIS contract, some of these are

  • Owners who want to add to their disposable income, and are perhaps asset rich/cash poor
  • Owners wanting to release value from their home without leaving it
  • Owners wanting to release value from a second home
  • Owners who do not like the rent-out option
  • Owners wishing to plan their estate and help family members with cash whilst avoiding inheritance tax and reducing capital gains
  • Owners who have no heirs

LUIS is available to property owners aged 72 or above (both couples and singles). The property has to be mortgage free or with a mortgage that does not exceed 10% of the value of the property (as determined by a professional government approved valuator).

Little LUIS

Our Limited Usufruct and Income Solution -Little LUIS- is similar to LUIS but with the difference that both the pension and the usufruct rights are not for life, but for a pre-agreed limited period of time only.

This pre-agreed period of time will typically be between 5 and 10 years.

Being limited in time, Little LUIS will generally offer a higher guaranteed monthly pension than LUIS, which in some circumstances may be a more desirable solution. Also, the minimum age for little LUIS is only 60.

However, Little LUIS does not offer the security that naturally comes with lifetime rights (as in LUIS). At the end of the pre-agreed period, usufruct and pension rights expire and the seller will be asked to vacate the property. Therefore, careful long term planning will be necessary in order to avoid a situation where the seller ends up short of resources and with no alternative accommodation.

In order to help the seller avoid such difficult situations, NDP has introduced some qualifying criteria that will apply to all Little LUIS proposals. These include a.o.:

  • Contracts will expire no later than in the 75th year of the occupier (usufruct).
  • Contracts will be for a min of 5 years and max of 10-12 years.

Some of the reasons to enter into a Little LUIS contract could be:

  • Owners already know when they plan to move back to their home country
  • Owners would like to maximize disposable income now and have other assets to dispose of after the limited period has elapsed
  • Owners wanting to release value from a second home that they only want to use for a limited amount of time
  • Owners have no heirs

Little LUIS is available to property owners aged 60 or above (both couples and singles). The property has to be mortgage free or with a mortgage that does not exceed 10% of the value of the property (as determined by a professional government approved valuator).

Note: Our Lifetime and Limited Solutions can be highly beneficial for many property owners. But whatever your particular reason for considering to enter into a LUIS contract, remember that these solutions are not right for everyone. We strongly recommend that you discuss your intention to enter into such a contract with your family, independent legal or financial advisor or any other person having an interest in the property.

New Day Properties reserves the right to decline to provide an offer for any of these solutions at our discretion.

If you are the 60+ owner of a quality property on the Costa del Sol that is mortgage-free or with a small mortgage, and would like to find out more, you can give us a call on +34 951 242 500 or +34 670 502 955.

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Find out more
Contact us today on:
+34 951 242 500
+34 670 502 955

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