Buying bare ownership is a way to acquire a house at a discount. But banks are usually reluctant to finance this type of operation.

Author: Redacción

Source: Idealista

There is growing interest in the market for the sale and purchase of the bare ownership of homes. This alternative, aimed at older people who want to obtain liquidity from their home without leaving it, allows the buyer to acquire it with an average discount of 50%, but they will not be able to enjoy it until the death of the usufructuary.

The main drawback is financing: although it is possible to take out a mortgage, banks do not usually finance these operations, as they prefer to mortgage the full ownership of a property, not just a part of it. In this article we answer all your questions.

1. What is the bare ownership of a house?
2. What does it mean to be a bare owner?
3. What is the purpose of buying the bare ownership of a house?
4. What is the value of bare ownership?
5. Can you get a mortgage on bare ownership?
6. Who pays the mortgage: the bare owner or the usufructuary?

What is the bare ownership of a house?

Full ownership is divided into two distinct parts. On the one hand, we find bare ownership, which means owning the thing that is acquired. On the other hand, we find the right of usufruct, which means that one has the right to use the thing in question (even if one is not the owner of it). In this way, we speak of bare ownership as the right to own something (for example, a house), without this implying the right of usufruct.

What does it mean to be a bare owner of a house?

Being the bare owner of a house means that you are the owner of that house. In other words, you own the property. However, if you only have bare ownership and not the right of usufruct, this means that you cannot use the house in question (even though you own it) until you also have access to the usufruct.

What is the purpose of buying the bare ownership of a house?

Although when we are going to apply for a mortgage, the most common thing is to use the money to buy a complete house (full ownership), we can also acquire only the bare ownership. For example, if we are going to buy a second-hand home.

In this case, we will buy the house but we will not be able to use it until we also have the usufruct of it. This option is very common for older people who want to sell their house but continue to live in it until they die. As with reverse mortgages, this allows older people to enjoy the money their house is worth without having to leave it. What is usually done in these cases is that the buyer acquires the bare ownership of the house. Upon the death of the usufructuary, the bare owner automatically consolidates full ownership. From that moment on, the new buyer can fully dispose of the property, whether for his own use or for rent.

The main advantage of using this form of purchase is that buying bare ownership is usually much cheaper than buying full ownership (bare ownership and right of usufruct). In this way, you can acquire a property in ownership more economically with the only drawback that you will not be able to dispose of the usufruct until the death of the previous owner.

What is the value of bare ownership?

When acquiring only the bare ownership of a house instead of full ownership, much more economical prices can be found. The value of bare ownership will vary depending on the house. In this sense, it is common to find price discounts that range between 30% and 50% of the usual value of the house if it were acquired as full ownership and not just as bare ownership.

Can you get a mortgage on bare ownership?

One of the most common questions is whether you can get a mortgage to buy a bare ownership. The answer is yes. In fact, if we are thinking of taking out a mortgage to buy a house, this is one of the best options if we want to own a property without having to spend a lot of money on the purchase.

However, although it is possible to take out a mortgage to buy the bare ownership of a house, it is very difficult for a bank to finance the purchase of the bare ownership, as the bank prefers to mortgage the full ownership, not just a part of it.

Who pays the mortgage: the bare owner or the usufructuary?

The mortgage, or loan with mortgage guarantee, is an obligation associated with the person who receives the mortgage loan. In this case, it is the person who buys the bare ownership (which is used as collateral