Selling a mortgaged home is a common situation in the Spanish real estate market. Whether due to moving, home improvement or economic reasons, many people need sell your house with a mortgage still pending. Although it may seem like a complex process, It is totally viable if you know the regulations and have the appropriate advice. In this article we explain step by step How to sell a mortgage house in Spain, What options do you have and how to manage the process without problems.
Is it possible to sell a house with a mortgage?
Yeah. Any citizen can sell a mortgage house, as long as the loan is paid at the time of sale. It is a legal and usual operation. The buyer acquires the home free of charges, and the bank collects the outstanding capital directly from the amount paid to the seller.
Options for selling a mortgaged house
There are several ways to manage the sale of a home with a mortgage:
Cancellation of the mortgage with the amount of the sale
The most common option. He Buyer pays the price of housing, and with part of that money the seller pays off the mortgage. In the deed of sale, It is declared that the home is free of charges.
Mortgage subrogation
In some cases, he buyer can assume the existing mortgage if the bank approves it. This option can be advantageous if the loan conditions are favorable (low interest rate, For example). Requires the bank to study the solvency of the new buyer.
Early cancellation by the seller
If the seller has funds, can Cancel the mortgage before putting the property on sale, which gives greater agility and commercial attractiveness.
At Mayrasa we analyze with you the best strategy depending on the type of mortgage, the deadlines and your financial situation. Discover more in our real estate services.
What expenses are involved in canceling a mortgage??
When selling the home, if the mortgage is paid off early, you have to bear some expenses:
- Early cancellation commission (according to contract): normally between 0% y 1%.
- Notary expenses to register the mortgage.
- Management fees and property registration to update the situation of the property.
You can calculate these amounts with the help of our equipment or request a appraisal of your home to estimate the current value and profit margin.
Documents needed to sell a mortgage house
To start the process, you will need:
Property writing.
Last receipt of the mortgage loan.
Pending debt certificate issued by the bank.
Updated simple note.
Energy certificate and habitability card, and apply.
At Mayrasa we accompany you throughout the entire process and manage the collection of documents, the relationship with the bank and coordination with the notary.
What happens if I owe more to the bank than my house is worth??
Is what is known as sale with lower value to the pending capital. If the mortgage is higher than the sale price, you have two options:
- Contribute the difference with own funds when signing the deed.
- Negotiate with the bank to refinance the debt or agree to a dation in payment (in extreme cases).
This type of operations requires legal and financial advice, so we recommend you have a real estate consultancy specialized.
Tips for selling your fastest mortgage
- Prepare the property well: a good home staging can increase perceived value.
- It offers clear information about the mortgage: debt certificate, conditions, etc.
- Set a competitive price, taking into account the outstanding debt.
- Trust an agency with experience in mortgage operations, as Mayrasa.
Besides, If your home is located in the Torrevieja area, you can include it in our Mayrase selection and reach qualified buyers immediately.
What happens after selling?
Once the sale has been signed and the mortgage has been paid:
The buyer becomes the new owner of the property.
The bank delivers the cancellation certificate.
The Property Registry is updated.
If there is capital gain, the seller must declare it in the personal income tax.
In Mayrasa we also offer services after -sales to accompany you after closing and facilitate any additional procedures.
More recommendations before sale
A key recommendation before putting on a house with a mortgage is to request in advance the pending debt certificate to your bank. This document indicates the exact amount that remains to be paid on the mortgage and has a limited validity (generally between 2 y 4 weeks). This step is essential to avoid delays when signing the sale., since the notary will need that certificate to execute the registration cancellation and guarantee that the property is transferred free of charges.. Besides, facilitates negotiation with the buyer by having all the documentation clear from the beginning.
On the other hand, Selling a home with a mortgage can be a good opportunity to renegotiate your financial situation. If the property you are selling is your primary home and you are buying a new one, It is possible to transfer part of the debt to the new property or even improve your mortgage conditions by negotiating new financing. This strategy, known as subrogation for change of residence, can help you reduce interest, adjust quotas or release liquidity for other projects. In Mayrasa we help you find not only a buyer for your home, but also your new ideal home, whether it's apartment, penthouse o chalet.
Conclusion
Selling a mortgage house in Spain is a totally viable process if it is done with information, advice and good planning. From the cancellation of the loan to the signature at the notary, Every step can be solved safely with the right help.
If you are considering selling your mortgaged home in Torrevieja, Orihuela Costa or surroundings, in Mayrasa we offer you comprehensive support. Visit us in the section us, check our Promotion and marketing tools or contact us directly from here.
