This solution allows the customer (the lessee) to enjoy a property for a certain period of time, against payment to the owner (the lessor) of an income. The customer has the option to purchase the property at the end of the contract and against payment of the pre-established residual value.
It is a medium and long-term financing that is not restricted only to properties intended for housing, but can also be used in the acquisition of stores, offices, clinics, hotels, warehouses, industrial facilities, etc.
A Real Estate Leasing contract has multiple advantages, including flexibility in financing conditions, and is usually characterized by:
There are real estate leases for individuals and companies, although not all financial entities that practice this type of credit serve both markets. The financing conditions, as well as the type and value of the guarantees required, may differ depending on whether it is a private customer or a company.
A Real Estate Leasing agreement can finance the acquisition of properties already built and, or improvement or adaptation works, as well as the purchase of land and the respective construction of the property.
The Annual Nominal Rate ( TAE ) is calculated based on the Euribor rate plus the spread value, which can reach high values between 5% and 10%, due to the fact that Euribor rates are historically low. As an example: That is, considering a hypothetical rate of 10% of 9.875%, for a credit of 350,000 Euros over 120 months, initial entry of 20% and residual value of 2% and LTV of 80%, including
To the sum of the paid rents and the residual value, there are usually administrative expenses such as Dossier Commission, Income Processing Commission, Contract Management Commission, Early Redemption Commission, Contract Termination Commission , End of Contract Commission, etc.
When it comes to companies, a promissory note is usually requested by the Company with the endorsement of the partners and spouses. It is clear that the guarantees required may be different depending on the credit risk analysis.
Banks are the main financial entities to offer this type of product. Here are some links: