Anuncio

Colapsar
No hay anuncio todavía.

builders mortgage

Colapsar
X
 
  • Filtrar
  • Tiempo
  • Mostrar
Limpiar Todo
nuevos mensajes

  • builders mortgage

    We are about to complete next week & have just been told that the builder already has a mortgage on the property. We can take over this if we like, and will save some costs..valuation fee, & some solicitors fees.
    I have seen some info on this before somewhere but cant find it now,the existing mortgage is with the CAM bank,we intended to take ours with the SOL bank.Also if we do not take the builders mortgage we are liable for cancellation costs?
    Any thoughts ??

  • #2
    UltimateTraveller

    Surely this is illegal?

    I know the residential mortgage laws in Spain differ from UK (sorry if I've wrongly assumed you are from the UK), but I would have thought you have a choice who you take a mortgage out with and you are not liable for any exisiting mortgage cancellation costs if you didn't sign up to it in the first place.

    I intend to take out a mortgage independently in a few months when my apartment is ready and I'm certainly not expecting my builder to pass on any such cancellation costs to me.

    Have you verified this with the local Torrevieja authorities or a solicitor?

    UT

    Comentario


    • #3
      Thanks for the reply, I am waiting for the info to come from the solicitor on monday,the existing mortgage might be fine ? ,but i dont intend to pay any cancellation costs !

      Comentario


      • #4
        Is this the advice recommended by your legal representative? I was under the impression that any debts, including mortgage are placed on the property or the land and not on the owner of the property or the builder.

        Is your builders mortgage just for your property or for all the land that he has bought to build the properties on? Your legel rep should check to make sure that your property & land is debt free before you take over responsibility.

        Comentario


        • #5
          Hi spark240
          I'm interested to know why you did not take up the offer of taking over the builders mortgage if it was going to save you money? Had you already signed up for a mortgage offer with others - or have you got a better deal than the builders mortgage?
          I've also had the offer of taking over the builders mortgage and I'm trying to weigh up the pro's and con's.

          Comentario


          • #6
            Hi Allen. We haven't actually had the details of the builders mortgage yet. What sort of details have you had from your builders about their mortgage?

            Comentario


            • #7
              Hi spark240
              I haven't had any details yet as completion could be 2 months away and interest rates could change.
              I would be interested in the experience of anyone who has taken over the builders mortgage. Were there any problems? Did it save them any money etc.?

              Comentario


              • #8
                Just got details from solicitors, 3.25 % for 1 year, then euribor + 1.25%.
                1% charge for admin !, save about 700 euros in fees & save 270 euros cancellation fee.
                Sounds good, at least for the 1st year,will probably go with it.

                Comentario


                • #9
                  Spark240,

                  Make sure you check the redemption fees on the mortgage. Whilst UK mortgages are relatively free of early repayment charges these days, most Spanish mortgages are not. You may find that it could prove costly to switch at a later date, especially if you're getting a preferential rate for the first year.

                  Best wishes,

                  Chris.

                  Comentario


                  • #10
                    Redemption looks like 1% also,

                    Comentario


                    • #11
                      Spark 240
                      Just a point with regard to penalties for early redemption.
                      I had a discussion with a Spaniard in the property business about this - he advised that it was a common feature of Spanish mortgages.
                      Apparently, one method of avoiding this penalty is to pay off a major chunk of the mortgage but leave a tiny amount to run the full course of the mortgage period.
                      Perhaps it might be worth checking this out when you next consult with your legal rep.

                      Comentario

                      Trabajando...
                      X