British mortgage Spanish property

Information and questions about the Law in Spain and Andalucia.
Unicorn
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British mortgage Spanish property

Postby Unicorn » Sun Apr 15, 2018 12:49 pm

Does anyone know what you have to do when the mortgage is paid off?

Lawyers quote a vast amount of money for doing this and I suspect, as many other things they do, there is not a lot to it. Fair deals to them if they can get the money but my accountant reckoned he could do it for next to nothing.

I suspect the building society now only in the UK, used to be in Gib, say to use a lawyer because they always do in the UK, but the staff there have zero idea of what has to be done, even suggesting a lawyer who is the other side of Spain!

Any experience or knowledge of this process would be gratefully received.

So, thanks in advance :wave: :wave: :wave: :wave: :wave: :wave: :wave:

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costakid
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Re: British mortgage Spanish property

Postby costakid » Sun Apr 15, 2018 1:41 pm

Surely once the mortgage is paid off all they have to do is send you your deeds as in the UK. Our society charged us £50 to send our UK deeds. They had the cheek to ask for £400 a year to look after them. I politely declined there offer.

Unicorn
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Re: British mortgage Spanish property

Postby Unicorn » Sun Apr 15, 2018 2:37 pm

The lawyers are asking for 1500 Euro probably + IVA but I would have thought that all you have to do is prove the mortgage has been paid off to the registry.

katy
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Re: British mortgage Spanish property

Postby katy » Sun Apr 15, 2018 5:07 pm

Sounds about right. Don't know why it should be but my Daughter paid around 800 euro many years ago to cancel a mortgage. I was POA and someone from Norwich and peterborough Gibraltar turned up at the notary.

El Cid
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Re: British mortgage Spanish property

Postby El Cid » Sun Apr 15, 2018 7:31 pm

If you have a mortgage on a property in Spain from a Spanish bank you get a special escritura for the loan and the loan has to be registered with the property registrar. When you pay off the mortgage the process is quite complicated. You have to get a certificate from the bank and they have to send someone to the notary to sign it off. It then has to go to the registry for them to remove the loan from the registry and issue a new nota simple.

Using a decent Gestor, rather than an expensive lawyer will cost about €600 or so, most of which is notary, bank and registry fees.

I don’t know about foreign mortgages but I assume the process is much the same.

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Re: British mortgage Spanish property

Postby Manchesteral » Mon Apr 16, 2018 11:44 am

katy wrote:Sounds about right. Don't know why it should be but my Daughter paid around 800 euro many years ago to cancel a mortgage. I was POA and someone from Norwich and peterborough Gibraltar turned up at the notary.
Katy, by cancelling a mortgage do you mean paying it off early ? I've done this twice in my life and both times had to pay a premium !


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