Rentals, mortgages and credits: the new economic measures taken by the government

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Rentals, mortgages and credits: the new economic measures taken by the government

 

 

 

 

The Spanish Government has approved this week a new specific package of measures to try to minimize the negative effects of the coronavirus.

 

Already last week the launch of a series of financial aids was announced to support SMEs and the self-employed in the midst of the health crisis.

 

In this new Royal Decree-Law 11/2020, of March 31, the Council of Ministers implements new measures or updates some already started with a series of new bonuses especially aimed for small businesses and the self-employed, families, consumers and people in fragile economic situations.

 

Here are the main measures for paying rent for vulnerable people:

 

  • For six months from the beginning of  forced  State of Alarm all evictions are suspended.
  • The automatic renewal of rental contracts that expire within three months of the beginning of  this established rule  (April 2, 2020). This extension will be for six months and the terms and conditions of the contract in vigor will be maintained.
  • An automatic moratorium on the payment of rent is established for those tenants in vulnerable situations whose landlord is a large holder of housing, both public and private (in general, anyone who owns more than ten properties is understood as such)
  • The moratorium on the payment of the rent will be prolonged while the state of alarm lasts or while the situation of vulnerability persists, with a maximum of four months. Once this situation is overcome, the tenant will return the unpaid fee or fees over a period not exceeding three years, without any type of penalty or interest being applied.
  • A moratorium on rent payment is established for vulnerable tenants whose landlord is not a large holder of housing. The tenant may request a deferment in the payment of their rent. The lessor will have seven days to accept it, propose an alternative or reject it.

In the event that there is no agreement, the tenant will have access to a program of transitional financing aids at zero cost with the guarantee of the State. The tenant may request a finalist credit, directly paid to the lessor, for an amount of up to six monthly rents, to be returned within a maximum period of ten years. This credit will have no interest, it will be granted by credit institutions and will have the endorsement of the State, through the Official Credit Institute (ICO), which will sign the corresponding agreement with the Ministry of Transport, Mobility and Urban Agenda.

 

– The norm incorporates a specific program for victims of gender violence, homeless people and others who are especially vulnerable, in order to provide them with an immediate housing solution.

 

With regard to measures to support the payment of mortgages or consumer loans, the most important measures are the following:

 

  • A suspension period of three months is established.
  • Suspended fees are not paid at the end of the suspension, but all the remaining payments are postponed for the duration of the suspension. The self-employed can also benefit from this moratorium.
  •  A moratorium is also established on non-mortgage loans and credits that keep people in vulnerable situations, including consumer loans.

Last of all  you must know that the coronavirus does not stop the 2019 income campaign: from yesterday (April 1) and until June 30 the draft of the personal income tax declaration must be presented.

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