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balcon
06-03-2012, 11:19
Does anyone know if it is straight forward to transfer someones mortgage to yourself please. I know they do it in Spain, but I'm not sure if it's worth considering.

thank-you

CIM
06-03-2012, 14:00
It is called a subrogacion. Taking over of an existing mortgage. It depends on whether its a good product or not and how much it is for. I see some agents advertising properties for say 300,000€ with a "transferable mortgage option of 120,000€" which I really dont think is much of a selling point when you could apply for a new mortgage of 210,000€! So look at it in comparison to whatever else there is on the market and in relation to what it is you require.

The main advantage is there can be a cost saving on the mortgage deed tax - not a massive amount but a saving nonetheless. But beware not all banks will honour this these days and where you are saving one set of fees they may well hit you with another - or crappy linked products such as completely inappropriate and over priced life insurance!

If you need more than the amount outstanding then the bank may consider a subrogacion and a novacion where they alter some of the terms such as the amount offered but they may apply more charges to the additional element. Whatever you ask for, the bank is in no way obligated to offer it and some will not. They will also want full paperwork for the application. It is not an easier option in any way but if it happens to be competitive then itīs worth looking into.

balcon
06-03-2012, 15:25
Thanks for the info.
Itīs basically for a friend of mine who has the chance of an apartment, which the owner just wants to get rid of. He just wants his mortgage taking over, and small amount of arrears, the total involved is a lot lot less that the value of the apartment, so if it all went through ok, he has one hell of a bargain

CIM
06-03-2012, 15:38
Well he needs to speak to the bank involved then and ensure they are happy to take him as a mortgage client. If he needs to borrow, then he must speak to the bank before handing over a reservation or deposit unless it is written into the agreement that any deposit is subject to satisfactory mortgage.
I have one here which is very similar, priced literally to pay off what is outstanding and the sellers costs:
1 bed Los Cristianos reduced to 72,500€. (http://tenerifeestateagents.net/1-bed-apartment-for-sale-84950e-in-los-angeles-complex-los-cristianos/)

balcon
06-03-2012, 21:11
Thank you again, and looking at the price, itīs very similar to the one in question, only in Torviscas