Taking Over An Existing Mortgage In Spain

Given the expense associated with the purchase of property it is understandable that most properties have a mortgage associated with them. When buying real estate in Spain it is possible to take over the existing mortgage and a decision that needs to be made therefore is whether, and if so how, to take it over. The benefit in doing so lies in the fact that the costs associated with arranging a mortgage can be avoided. When taxes and costs are added, the final bill is considerable.

The following is the process to take over an existing mortgage on a property in Spain:

1. Request a copy of the deeds of the property

2. With the copy of the deeds we can then request a copy of the 'nota simple' from the land registry at the local town hall. This can now be requested in English.

  • The purchaser can either demand that the seller removes any existing charge or mortgage on the property, or
  • Take over the existing mortgage on the property. To do this it is necessary to inform the financial institution that has issued the mortgage to receive its approval. It is formally declared in the purchase deed that the purchaser will take over the mortgage.

3. The last receipt of the IBI (rates) tax should be requested to ensure that the property is up-to-date with regard to this payment.

4. Ensure that the property is not rented out

5. By law, all of the bills relating to the purchase are payable by the purchaser, with the exception of capital gains tax, known as plus valia in Spanish.