General manager for Commercial Banking at Santander Spain, Ángel Rivera, and the vice-president of MAPFRE and CEO of the company in Iberia, José Manuel Inchausti, have signed the agreement whereby Santander Seguros and MAPFRE will share 50% of the joint venture that will operate, once the required authorisations have been obtained, as a financial credit institution to develop reverse mortgages, which will be distributed exclusively through the networks of both companies in Spain.
With this agreement, Santander and MAPFRE are committed to leading the reverse mortgage business in the Spanish market and offering services specially designed for the senior segment.
The reverse mortgage is a financial product designed to enable senior citizens to supplement their income through their home, without losing ownership or the right to use it. It is a special type of mortgage loan aimed at people aged 65 and over, with unencumbered homeownership, which allows them to obtain liquidity from their real estate assets without losing ownership of the home, which they can enjoy until the time of death. This product can be complemented with an annuity insurance policy that guarantees the same level of income for life.
The joint venture between Santander and MAPFRE will work on the design, configuration and conditions of the reverse mortgage, with a focus on offering senior customers valuable services tailored to their needs, with simple processes to make it easier to take out the product.
The Uría Menéndez´s Madrid office team included M&A/Private Equity partner Guillermo San Pedro, Competition & EU Law partner Tomás Arranz, M&A/Private Equity counsel Jaime del Fraile, and M&A/Private Equity associates Carmen Santo and Ignacio Díaz de Rábago.
Uría Menéndez also advised Bankinter on its agreement with Liberty Seguros, as reported by Legal Dealmaker on February 23.
