Can I release equity to purchase a Spanish property?

The Question

I have a very straightforward question regarding equity release – are there any restrictions on what released funds can be used for? I own a property in the UK and would like to purchase a second home in Spain.

I could pay outright for the property if I were to release 25% of the funds in my current home. Is this allowed and will I need specialist advice?

Mark’s Answer

Thank you for your straightforward question and you’ll be pleased to know that in most cases, the answer is yes: equity release funds can be used to purchase a second home abroad, including in Spain.

There are a few conditions to be aware of. If you’re:

• Aged 55 or over
• A UK homeowner
• Planning to remain living in your main UK residence (not moving permanently to Spain)

…then you’re likely to be eligible to release equity from your UK property to fund a second home purchase.

However, lenders will need to assess your full circumstances, including the value of your home and how much equity you wish to release. You won’t necessarily need specialist advice for buying in Spain, but you will need expert equity release advice especially to ensure the plan you choose allows this type of use (most do, but it’s always best to check).

To explore your options now, you can try our free research tool – smartER, which lets you compare equity release deals tailored to your age and property value, with no credit checks or obligations.

Or, if you’d prefer to speak directly with a qualified adviser, call us on 0800 802 1051. We’re independent, whole-of-market experts, and you’ll only pay a fee if you go ahead with a plan that completes, and you’re fully satisfied.