Reversal mortgage as a pension provision.

An important option is always disregarded in the discussion about the pension provision for self-employed persons. Eating your own home through a reversal mortgage.

Currently, the voluntary pension provision for self-employed persons is central. Several organizations that represent the self-employed appear enthusiastic, but the self-employed are not eager to get in here. There is justifiable fear of a later obligation if the voluntary solution does not yield enough. Nevertheless, there is a solution that economists have been proposing for a long time and have proven to work excellently in the US and Ireland [alternative form]. Reversing the mortgage.

The Netherlands is poor and rich at the same time. Income is under heavy pressure and has barely grown for years. But our stone capabilities are immense. No less than 537 billion euros are trapped in private stones. That is 91% of GDP! That capacity is mainly at 45 years and older. They own no less than 90% of the total stone power. As people grow older, net wealth also increases due to the repayment of the mortgage. In addition, equity represents part of that capital. In the Netherlands, however, it is difficult to cash in on this capital for retirement or for additional income with high health costs.

Principles.

At the end of the term of the mortgage, a homeowner has the choice of spending the estate built up or leaving it in estate. The latter is often unfavorable for heirs. The house has to be sold and the inheritance tax then takes up a large part of the property.

Spending is then a better option. The homeowner can then choose to sell the house and move into a cheaper house [new purchase or rent]. However, this is not favorable from a tax point of view, and the Government frustrates the market here because a new but lower mortgage is hardly possible because of the requirements that are set here. [additional scheme] In addition, the abolition of the ‘cheaper scheme’ as of 1 January 2010 by Rutte I is a major obstacle to setting aside capital for pension or healthcare costs.

Renting is then the alternative where the tax comes into play immediately because of the released capital on account. The monthly costs will rise considerably, especially if the home is mortgage free. However, most people hardly want to move at a later age. The main reason for moving, employment, has disappeared at that age.

Reversal mortgage.

With a reversal mortgage, the built-up capital in the home is converted into a loan. In addition, the owner receives a monthly payment that is credited as debt. So the mortgage lender slowly regains ownership of the house.

There are basically two variants. The house is sold at the end of life or is sold immediately upon taking out the reversal mortgage. In both cases, the right to reside is retained.

 

Florius Silver Mortgage.

A loan is taken out with the Verzilver Mortgage, whereby part of the equity is included. This part can be spent freely. The amount of this part depends, among other things, on: 1) The age of the owner of the occupant (s); 2) The market value of the house; 3) The interest. This is a fixed rate that applies for the entire term. The current term interest rate is 7.3%.
Characteristics:

The equity to be redeemed can be paid out in three ways: in one go, via a monthly fixed amount or as a combination of both.
Guarantee no residual debt after the sale of the house (if the conditions are met).
Preservation of the property of the house (but with it the burden of maintenance).
No maximum duration and therefore no restriction on the duration of habitation

Silver Plated Living (Tower City)

Silver-plated living is not a reversal mortgage, but it does show similarities. A housing association or real estate investor buys the house. The purchase price is determined by the value of the house and is divided into a property right and a right of residence. The right of residence remains the property of the resident and guarantees the right to occupy, without rent payment, as long as the resident wishes and lives in the house himself.
Requirements:

The still existing mortgage loan is repaid and paid from the sale proceeds.
Overdue maintenance must be eliminated
The right of residence is not transferable, so there must be no children living with it or subletting

Obstacles.

AFM: a new mortgage is barely possible for people with a small income because of the AFM requirements. While there is sufficient power available. [income test]
Government: The additional loan scheme in place hinders the use of the [over] value of the house for other purposes. In addition, Minister Blok refuses to cooperate with a guarantee system for the mortgage market in order to reduce the interest burden on a reversal mortgage that now amounts to 7.3%. As a result, the net yield

 

bron:
http://www.eigenhuis.nl/downloads/nieuws-pers/Rapport-Pensioen-staat-als-een-huis.pdf

http://www.nrc.nl/carriere/2015/06/08/weinig-animo-voor-zzp-pensioen/