FAQ´s
Property Nuda
Is it a legal and secure process?
Yes, the sale of bare ownership takes place before a solicitor and is governed by law. All the rights and obligations of both parties are set out in the deed of sale and registered with the Land Registry, which provides you with the utmost guarantee and security.
Can I continue to live in my home?
Yes, that is the main benefit. You retain the right of life tenancy, which guarantees you by law the right to use and enjoy the property for the rest of your life.
Who pays the housing costs?
The seller (usufructuary) is responsible for utility bills (electricity, water, gas), the standard service charge, and the portion of the home insurance policy covering the contents.
The buyer (bare owner) is responsible for paying council tax, any extraordinary service charges, and the portion of the home insurance policy covering the building structure.
What taxes do I have to pay on the sale?
People aged 65 or over who sell the bare ownership of their main residence (where they have lived for at least the last three years) are exempt from paying any capital gains tax under the Income Tax (IRPF) scheme; therefore, in this specific case, they would only be liable for municipal capital gains tax. We will advise you so that you are fully aware of your specific tax situation.
Can I rent out the property?
Yes. As a usufructuary, you retain the right to use the property and to derive financial income from it; therefore, you may rent it out if you wish.
What happens to my heirs?
Ownership of the property is no longer part of your estate. Any money you receive from the sale becomes part of your personal assets, which you can leave to your heirs.
What happens if the buyer dies?
The right of life-long usufruct is personal and non-transferable. Ownership would pass to the buyer’s heirs, but their right to live in the house remains intact and is legally protected.
What factors are taken into account when determining the value of bare ownership?
What are its advantages over other options?
- Keep your home: The most significant advantage is that you receive a substantial sum of money, but you don’t have to leave your home. You continue to live there for life, with complete peace of mind.
- You do not go into debt: Unlike other financial products (reverse mortgage), here you receive the capital from the sale and do not take on any debt. It is a solution with no repayments or interest.
- It frees you from expenses: The new owner takes care of the most significant expenses, such as council tax (IBI), extraordinary community charges and the part of the home insurance policy covering the building itself, easing your financial burden.
- It is a definitive solution: It is a clear process with no surprises that provides you with the capital you need immediately or in instalments, so that you can take control of your future without worries.
Differences between bare ownership, full ownership and usufruct
What are the differences compared to a reverse mortgage?
- This is a financial product offered by credit institutions (banks) or insurance companies. It involves mortgaging the property at high interest rates (6–7%), thereby leaving a debt to your heirs.
- The amount received is lower than that from a sale of the bare ownership.
- Living in the property for a long time works against the interests of owners and heirs, as the debt increases every month because interest is added to the principal.
- In short, a reverse mortgage is a tool for obtaining liquidity, but it comes at a high financial cost.