Maria is 80 years old, a widow and has a degree of Dependence II. Her two children cannot afford the expenses of a private residence, nor can she herself. Your monthly pension of 700 euros is not enough to take care of the 1,800 euros of the center, to which you would have to add another 100 euros, approximately, for personal expenses.
That is, the lady would need 1,200 euros more to be able to enter that residence. But, now there is a new possibility with which to solve this situation. María lives in a property that she could rent, for the area and state of conservation, for approximately 800 euros per month.
Rent the property home to be able to meet the expenses of a residence, new financial solution exclusively for the elderly
María and her children decide to hire the ResiRent program, the new Banco Sabadell service offered by the management company Pensium. They estimate that they need contributions of € 1,200 per month. The lady enters the residence. Pensium contributes every semester the amount agreed upon for the rent and takes care of all the procedures and reforms that the house needs.
When the house is rented, in approximately two months, the program begins to be amortized. At three years old, Maria gets her public place and does not need any more contributions. What happens then with Pensium? If there is still debt, it is still amortized with the rent or can be settled without any cost. The family has been able to maintain the property of the house, renovated and with a stable rent.
Conditions and process
Those over 75 years of age who depend on others to take care of themselves and take advantage of this program can choose; In addition to owning a property that can be rented continuously over time. The bank analyzes the situation of each person individually, and even provides solutions to expedite the process. Many of them have not been able, for a time, to obtain the certificate of degree of dependence, for example. Banco Sabadell, through its own team of social workers, can identify the dependence of each client.
By meeting all these requirements, the program already advances six months of rent so that the family can meet the initial expenses of entering the center. With ResiRent, Banco Sabadell is committed to strengthening its offer of services to the elderly and is positioned with a differentiated offer that does not jeopardize home ownership.
In fictitious situations like this, thousands of families in Spain are found every day, due to the increase in life expectancy and the lack of income in families that makes it difficult to face urgent and extreme situations such as hiring a caregiver or entering a residential center for the elderly.
Most countries with the highest life expectancy are in Europe. And Spain is in the top positions. It is expected that in 2033, 49,016,091 people live in the country; of which more than 25% will be over 65 years old and almost 8%, over 80 years old; which represents 30% more than today. This population aging becomes a decisive factor when designing new financial products, and it is necessary to give greater support to the demand for services for the elderly.
ResiRent protects and ensures that the dependent and urgently needed person can resolve them as soon as possible
After years of experience, José Manuel Pedregal, director of Financing Solutions at Banco Sabadell, is aware that older people, in general, try not to resort to these types of financial products. "They do not move by the same pattern of consumption of young people and prefer not to borrow," he says.
Therefore, when the elderly come to the entities in search of financing "it is for real needs." Whether facing the entrance to a residence or hiring the services of a caregiver, at that time, what the client needs is liquidity, and few people have it. Of course, the general rule in Spain is that the elderly do own a home.
Calm the urgency
In this scenario, and after several focus group and debates, Banco Sabadell devised the Resi- Rent project. “We have created it as if it were a rental in reverse. We have realized that the Spaniards are reticent to the possibility of contracting a reverse mortgage, unlike what can happen in Nordic countries, for example. Here, the majority, out of pure sentimentality, do not want to part with their property, ”says José Manuel Pedregal.
In this sense, turning the situation around and offering something similar, but linking it with a rental is working. ResiRent acceptance is being very high. It should not be forgotten that, for the most part, the need to enter a residence occurs unexpectedly and the elderly, and their families, need immediate help to deal with it. This product is born already very focused on this casuistry.
Beyond covering these monetary needs, Pedregal highlights the "reassuring" character of the product. These moments are often lived with urgency and a lot of anguish on the part of the families and in addition they are usually long processes: getting the certificate that gives a person their degree of dependence to be able to opt for a place in a public center can be extended months, even years .
“The fact that this solution simply exists already gives our clients some peace of mind, just as they tell us. Although they do not need to hire it at the moment, knowing that they have the possibility of dealing, personally and financially, at a time like that calms them down, ”he adds. Therefore, the added value that ResiRent brings is “protect and ensure that the dependent person and with that need can solve it as soon as possible,” concludes the director of Financing Solutions at Banco Sabadell.