In Britain, reverse mortgages began to be marketed, in its modern conception, in 1965; Although from the 1930s were already performed similar businesses. For its part, in the United States, began its development in 1989. In Spain, the reverse mortgage began its journey about 9 years ago, but in a very timely manner. Until this product is not regulated in law 47/2007 did not begin its true development. In Spain, unlike other countries, we have a great tradition of inheritance. Therefore as annuity and the reverse mortgage products have had a development more difficult and slow that in other Western countries, while in Spain 82% of the elderly of 65 years are owners of their homes. However, these owners cannot make profitable their properties, which do not get them the wealth that have accumulated with the passing of the years.
Furthermore, in the vast majority of our Western neighbouring countries these products have tighter regulation. In Spain, the Law 47/2007 collects the figure of the independent assessor in the reverse mortgage operations but have still not been regulated fully conditions, form and requirements for the realization of these functions of professional counseling. In Britain, the majority of entities financial (98%) that sell the reverse mortgage has been subscribed to a voluntary code of conduct (SHIP). The principles of this code are transparent information, the presence of the independent assessor in the operations, and that the debt accumulated by the older person never exceed the value of the property. In United States, 90% of the reverse mortgage are regulated by the United States Department of Housing & Urban Development.
This body sets also how compulsory figure of the Independent Adviser for fulfilling their functions this explain to elder of this complex product characteristics, the risks involved in their recruitment, and options offered by the market. For its part, annuity stands out form very special in France. In the Gallic country there are plenty of real estate portals where they sell properties in annuity scheme. These ads, in addition to explaining the characteristics of the property, specify the ages of the tenants, as well as monthly income that would have to pay to buy the bare ownership of these homes. The most popular portals include, among others, Viagers.net, Viager-europe.com, Paruvendu.fr Seloger.com. Ignorance of these products is undoubtedly the major cause of its lower development in Spain. Therefore, the first step is to provide useful and practical information about them, with clear definitions, at the same time clearing up all doubts that might be unleashed. In particular, an annuity constituted about a property is a contract whereby the seller perceives an income for the rest of his life, in exchange for the transfer of ownership of their housing, but maintaining the right of use and enjoyment of the same. For its part, a reverse mortgage is a loan with a mortgage guarantee granted by a financial institution or insurer, by which persons 65 years of owners of a home, may perform periodic provisions or a single provision (this option is very little extended between the entities that sell it), up to a maximum amount determined by a percentage of the value of current appraisal of the floor, without that debt may be required until the death of the owner or of the last beneficiary.