HOME WITH A MORTGAGE, EITHER THE BUYER’S OR THE SELLER’S.
Buying or selling a home can be a difficult task, especially when there is a mortgage. What should we do?
There are several options in these cases:
OPTION 1) The seller, with the money from the sale of the property, can pay the outstanding capital in the bank (the remainder of the mortgage). Once paid, the seller must cancel the mortgage charge by communicating the payment to the Land Registry. Thus, before the notarial signature of the purchase, the property would be free of the mortgage charge.
OPTION 2) The buyer is subrogated to the seller’s mortgage. The bank must approve the change of debtor, and if it accepts it, the new buyer keeps the seller’s mortgage that remains to be paid.
OPTION 3) The buyer owns a property with a mortgage that they want to sell, and is interested in buying another property. In this case, we are dealing with a bridge mortgage: the same person has two mortgages, that of his property and that of the property they have just bought. In this case, we recommend selling as quickly as possible to cancel the mortgage debt and sell the property free of charges.
If you have any doubts or more specific questions, or if you would like us to accompany you during the purchase or sale of your property, you can contact us without any obligation, and we will help you with the purchase or sale of your property.
R&MORENO ABOGADOS
C/ Ramón Gomez de la Serna, 22 Ofic 503
29600 MARBELLA – Málaga
Tfno. +34 658 813 200 – 951 469 361
info@rmorenoabogados.com