Bare Ownership for Seniors: Security and Financial Peace of Mind

Bare ownership has become the preferred solution for seniors who need to improve their financial situation without giving up what matters most: continuing to live in their home. This article explains why this approach offers maximum security and peace of mind for people over 65, and how it compares to other alternatives.

Why Is Bare Ownership Ideal for Seniors?

For many seniors in Spain, their home is their primary asset. After a lifetime of work, they own a property worth hundreds of thousands of euros, yet their monthly pension may be insufficient to cover their needs. Bare ownership solves this paradox:

• Converts property wealth into immediate cash
• Preserves the right to live in the home for life
• Generates no debts or interest (unlike a reverse mortgage)
• Offers total legal security backed by the Civil Code

The Numbers

Consider this typical situation:

Factor	Value
Property value	€280,000
Homeowner’s age	74 years
Monthly pension	€900
Amount received from bare ownership sale	€160,000
Monthly equivalent (supplementing pension for 15 years)	~€890/month
New effective monthly income	€1,790/month

This represents a 99% increase in monthly disposable income — transforming a tight budget into a comfortable retirement.

Common Concerns (And How Bare Ownership Addresses Them)

“I’m afraid they’ll kick me out of my house”

This is the number one worry. The answer is unequivocal: nobody can force you to leave your home. Your life usufruct right:

• Is registered in the Land Registry (Registro de la Propiedad)
• Is a real right (derecho real), not a simple contract
• Is enforceable against any third party: even if the bare owner sells their share, the new buyer must respect your usufruct
• Is protected by the Spanish Civil Code
• Is ironclad in the notarial deed prepared by our legal team

This is fundamentally different from a rental agreement, which can be terminated. A registered usufruct cannot be revoked by anyone, under any circumstances.

”I don’t understand the process and it makes me uneasy”

It’s natural to have concerns about such an important decision. That’s why at NudaPropiedad we ensure:

• Free initial consultation: we explain everything in plain, simple language
• Independent legal advice: we recommend you consult with your own lawyer
• Complete transparency: all costs, terms, and conditions are disclosed upfront
• No pressure: you have all the time you need to decide
• Family involvement: we encourage you to discuss the decision with your children and loved ones

”What if I need medical care or need to move to a care home?”

Your usufruct rights are flexible enough to handle life changes:

• If you need care at home: use the funds from the sale to pay for in-home caregivers
• If you move to a care home: you can rent out your property and use the rental income to help pay for care
• If you want to move in with family: you can rent out the property or simply vacate it — your usufruct remains valid either way

The key point: your usufruct includes the right to rent out the property and keep all the rental income. This provides an additional safety net.

”My children are worried about their inheritance”

This concern is entirely valid and should be discussed openly with your family. Here are the facts:

• Your children’s inheritance changes: the property is no longer part of the estate
• But you provide immediate financial benefit: the liquidity from the sale can benefit the entire family now
• Many families prefer this approach: rather than inheriting a property they may need to sell (with associated taxes and delays), the family benefits from the cash now
• You can share the proceeds: many sellers give part of the sale amount to their children as an advance on inheritance, which can also have tax benefits
• Estate planning becomes simpler: fewer assets means simpler probate and lower inheritance taxes

Who Is Bare Ownership For?

Ideal Profile

Bare ownership is especially suitable for:

• People over 65 who own their home outright (no mortgage)
• Those with insufficient pension income to maintain their desired lifestyle
• Seniors who want to fund home improvements, medical care, or travel
• People who want to help their children or grandchildren financially while still alive
• Homeowners who prefer a simple, clean financial solution (no loans, no monthly payments to a bank)
• Couples who want financial security for the surviving spouse

When It May Not Be the Best Option

Bare ownership might not be suitable if:

• You already have sufficient income and savings
• You’re under 60 (the discount is very large, and you’d receive less money)
• Your property has an outstanding mortgage (it must be paid off first)
• You’re planning to move in the near future
• Your heirs specifically want to inherit the property and have strong objections

How the Process Works for Seniors

The process is designed to be simple, safe, and stress-free:

Step 1: Initial Contact and Valuation (Free)

• Call us at 900 123 456 or fill out our contact form
• We visit your property for a free appraisal
• We provide a no-obligation preliminary offer within 48 hours

Step 2: Review and Family Discussion

• Take all the time you need to review the offer
• Discuss with your family, lawyer, or financial advisor
• We answer any questions — no pressure, no deadlines

Step 3: Legal Documentation

• Our legal team prepares the deed with maximum protections for you
• We recommend you have your own independent lawyer review the documents
• All terms are explained clearly before signing

Step 4: Notary Signing

• Both parties sign before a notary public
• The notary verifies your understanding and free will
• Your life usufruct is registered in the Land Registry
• You receive payment (bank transfer or cheque)

Step 5: You Continue Living in Your Home

• Nothing changes in your daily life
• You keep your keys, your furniture, your routines
• You now have financial peace of mind and the security of your registered usufruct

Financial Benefits for Seniors

Immediate Liquidity

The most obvious benefit: access to a significant lump sum without taking on debt.

Property Value	Approximate Amount Received	Monthly Equivalent (15 years)
€150,000	€80,000 – €100,000	€450 – €555
€200,000	€110,000 – €140,000	€610 – €775
€250,000	€140,000 – €175,000	€775 – €970
€300,000	€170,000 – €210,000	€945 – €1,165
€400,000	€230,000 – €280,000	€1,275 – €1,555
€500,000	€290,000 – €350,000	€1,610 – €1,945

Tax Advantages for Seniors Over 65

Sellers aged 65+ selling their primary residence enjoy a complete exemption from capital gains tax (IRPF). This means:

• €0 in income tax on the sale, regardless of the gain
• No reinvestment requirement (unlike the exemption for under-65s)
• Significant savings: for a typical gain of €100,000+, the tax saving can exceed €20,000

For full details, see our tax guide.

Reduced Ongoing Expenses

As the usufructuary, you continue to pay normal household expenses (utilities, IBI, community fees). But the lump sum received can be used to:

• Pay off any existing debts
• Fund home modifications for accessibility
• Cover medical and care expenses
• Supplement your pension for a comfortable lifestyle
• Help family members with education, housing, or other needs

Legal Protections: Your Rights Are Ironclad

The Life Usufruct

Your right to live in your home is protected by multiple layers of legal security:

1. Civil Code: Articles 467–522 establish the legal framework for usufruct rights
2. Notarial deed: the specific terms of your usufruct are documented in a public deed
3. Land Registry: your usufruct is inscribed as a real right, visible to any third party
4. Judicial protection: any violation of your rights can be enforced through the courts

What Can’t the Bare Owner Do?

The bare owner (buyer) cannot:

• Enter your home without permission
• Make changes to the property without your consent
• Sell the property to someone who doesn’t respect your usufruct (this is automatic — any buyer inherits the obligation)
• Pressure you to leave in any way
• Charge you rent or any fees

What Can You Do as Usufructuary?

As the usufructuary, you can:

• Live in the property for life
• Rent it out and keep all rental income
• Make improvements (with some restrictions for structural changes)
• Allow family members or guests to stay
• Enjoy the property exactly as you did before the sale

Real Stories: How Bare Ownership Changed Lives

Antonio, 76, Madrid

“My pension of €800 wasn’t enough to cover my medication and living expenses. After selling the bare ownership of my apartment, I received €145,000. I now supplement my pension with €700 per month. I still live in the same apartment I’ve lived in for 35 years, but without the financial worry.”

Carmen and José, 72 and 74, Barcelona

“We wanted to help our daughter buy her first home, but our savings weren’t enough. By selling the bare ownership, we gave her €80,000 for her down payment and kept €90,000 for ourselves. We all benefited, and we haven’t moved a single piece of furniture.”

Pilar, 80, Valencia

“After my husband passed, the house felt too empty but I didn’t want to leave. The bare ownership sale gave me the money to hire a live-in carer. I’m still in my home, I have company, and I have no financial worries.”

Names have been changed to protect privacy.

Frequently Asked Questions

What happens if I die?

Your usufruct ends and the bare owner becomes the full owner. Your heirs have no obligation regarding the property, and there are no outstanding debts.

Can my spouse continue living in the home?

Yes, if the usufruct is established for both spouses (which we always recommend for couples). The surviving spouse retains full usufruct rights.

What if the buyer goes bankrupt?

Your usufruct is completely unaffected. It’s a real right registered in the Land Registry, and no creditor of the bare owner can touch it.

Can I do renovations?

You can make minor improvements and maintenance. Major structural changes require the bare owner’s consent, but this is rarely an issue in practice.

What if I want to rent out a room?

As the usufructuary, you have the right to use and enjoy the property, including renting it out. You keep all rental income.

Getting Started: Your Next Steps

If you’re considering bare ownership, here’s what to do:

1. Call us: 900 123 456 (free, confidential, no obligation)
2. Visit our website: learn more about how it works
3. Read more: understand taxes and how to calculate value
4. Talk to your family: involve your loved ones in the decision
5. Get a free valuation: contact us and we’ll visit your property at no cost

At NudaPropiedad, we’ve helped hundreds of families across Spain improve their quality of life through bare ownership. Our commitment is to transparency, security, and respect — because your home and your peace of mind are what matter most.