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Poland allows reverse mortgages

PR dla Zagranicy
John Beauchamp 15.12.2014 11:34
The law on reverse mortgages comes into force on Monday, 15 December. Poland has to date lacked a legal framework to allow primarily retired people to unlock the value of their properties.

Photo:Photo: sxc.hu

Polish banks will now be able to buy properties from individuals in return for a lump sum or for payments in instalments. The banks then recoup their money by selling the property following the previous owner’s death. If the value of the property exceeds the sum of payments made prior to the owner’s death, the bank returns the different to heirs.

While the product is aimed primarily at retirees, the law does not specify a minimum age at which the product becomes available. (an)

tags: mortgage
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