Mortgages... Can Somone Take Over An Existing Mortgage
Mar 5th 2010, 5:54 pm
#1
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Mortgages... Can Somone Take Over An Existing Mortgage
Does anyone out there know the trurh about this?.
Can someone take over a current Spanish Mortgage on a property?.
Can someone take over a current Spanish Mortgage on a property?.
Mar 5th 2010, 6:23 pm
#2
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
Yes this is quite normal in Spain - the mortgage could be either the builders in the case of a new property of the existing owner in the case of a resale it is called subrogacion (subrogation)
The only problem comes when someone takes one over they were not expecting!
But it can be quite beneficial as the setup costs are much lower. Take professional advice if this is being offered but don't reject it out of hand.
The only problem comes when someone takes one over they were not expecting!
But it can be quite beneficial as the setup costs are much lower. Take professional advice if this is being offered but don't reject it out of hand.
Mar 5th 2010, 6:35 pm
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
Good Evening SpainRico.
Thank You for the reply tonight.
I had seen the word "Subrogacion" & believed that was correct.
Will look into that with my bank!.
Thank You for the reply tonight.
I had seen the word "Subrogacion" & believed that was correct.
Will look into that with my bank!.
Mar 6th 2010, 1:05 pm
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
Mar 6th 2010, 1:15 pm
#5
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
To be honest it is a brilliant idea - everyone is a winner, the bank gets to keep the mortgage and the seller (or builder) subrogates it to the buyer. It can save a fortune in bank setup admin fees and means there is one less party (ie a new mortgage provider) in on the act at the notary.
One thing to look out for maybe taking on a mortgage at an old high interest rate as they have come down so much now - as always read the small print and take qualified legal advice. (Not some mate with 2 more words of Spanish than you)
One thing to look out for maybe taking on a mortgage at an old high interest rate as they have come down so much now - as always read the small print and take qualified legal advice. (Not some mate with 2 more words of Spanish than you)
Mar 6th 2010, 1:25 pm
#6
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
How does this affect the property market, property values and property prices in general tho?
Jo xxx
Jo xxx
Mar 6th 2010, 1:29 pm
#7
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
Depends - but if you are selling a house with a mortgage and the potential buyer needs a mortgage he might be tempted to buy yours as against negotiating a new mortgage on another property with all the on costs.
Apart from that I don't think it has an effect. - ??
Apart from that I don't think it has an effect. - ??
Mar 6th 2010, 4:25 pm
#8
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Re: Mortgages... Can Somone Take Over An Existing Mortgage
This from
http://www.spainaccountants.com/tax.html
Home owners
The maximum allowable expenditure is 9,015 euro, with 15% tax relief. The following payments are allowable:
*
Cash payments.
*
Mortgage interest paid.
*
Deposit in cuenta vivienda. (Special savings account for the young)
http://www.spainaccountants.com/tax.html
Home owners
The maximum allowable expenditure is 9,015 euro, with 15% tax relief. The following payments are allowable:
*
Cash payments.
*
Mortgage interest paid.
*
Deposit in cuenta vivienda. (Special savings account for the young)
