Many homeowners have seen their home value rise over the years. At a later age there may be a need to partly cash in the house value, for example for a renovation. Fortunately, there are more and more opportunities to convert the value of the home into money without having to move.
New product to cash in on property value
Last year, for example, the mortgage redemption was revived, with which the surplus value can be partly discounted. Now Good Lender has been added. With this new silver-plating product from Goodlife you can cash in the land under the home.
Read more about the different ways to include the surplus value.
How does Good Lender work?
With Good Lender you sell the land under your home to the Dutch insurance company Goodlife. The remaining mortgage is first repaid with the current land value. You then receive the remaining amount of money in one go and you can spend it freely. After that you only pay a monthly fee for the use of the land to Goodlife (canon).
An income test takes place at Good Lender. Your income must be high enough to support the monthly canon. Because this is based on the current burden, the assessment is less strict than a regular mortgage through the bank.
The advantages and disadvantages of Good Lender
This construction has similarities with long-term lease, but with a number of important differences. Your rights and obligations are the same as when the house is fully owned. You can also buy the land back at any time and sell the property (incl. Land).
The main advantage of Good Lender is that the money is deposited in 1 go, after which you can spend it freely. The construction also has a number of disadvantages:
- You take an advance on the proceeds from the sale, which reduces your estate.
- You also do not profit optimally from the increased house price, because the increase in land value belongs to Goodlife. With a fall in the value of the home, the amount to buy back the land does not decrease
Curious about your options to partly cash in the property value? Have your options calculated without obligation.