Raise cash payable on sale of property

I was informed that I could raise cash that can be repaid on the sale of my property.    If so, what are the pros and cons?

I don't know if I am being a bit think here, but I'm not sure what you mean about "raising cash". 

Are you talking of some sort of remortgage or a loan of some sort?

Justin

Hi Justin,

I believe that it is an equity release via a bank that will give you a loan. The difference being that the house is not transfered to the bank and the money is payable when the house is sold. I was just wondering if anyone has heard fo such a loan. Cheers.

There are a few finance companies and banks that do this, it is called a "hipoteca puente" but normally this is so that you can purchase another property while that one is for sale.

You also have the option of what they call "Capital Privado" which are personal loans over 6 months or a year at about a 20% interest rate. These normally are kind of like second mortgages and do not recomend them unless desperate.

Joan

Joan is quite correct and the funds advanced will be secured on one or other property - and in some cases across both. It is possible to arrange a plain vanilla equity release but you would still incur costs of raising the finance and it would be considered a conventional "remortgage".