Legal tip 38. FREE OF CHARGE mortgage relief now!
Wednesday, February 4, 2009 @ 9:42 AM
If you do not want to read the law-languaged text below:
FREE OF CHARGE… relief for your mortgage payments: If you agree with the Bank to extend the maturity term of your mortgage between May 2008 and April 2010… you will have no Notary and Registry costs and no tax burden attached…
We lawyers, should also be charging minimums by the Bar Association in these cases….in my humble opinion.
Now for the Law-oriented EOS readers:
Lengthening of maturities of the mortgage loan is a possible way out of difficulties in payment of mortgage instalments,within a novation contract, which is in essence a contract by which the bank and the loan debtor determine new mortgage conditions.
It is also a very practical measure in present days as, from May 2008 to April 2010, does not incur costs. This is due to the Royal Decree Law 2 / 2008 of April 21, on measures to boost the economic activity, which provides the no subjection to the tax established in article 31.1 of the text of the Law of the transfer tax and Stamp Duty of individual deeds, of those novation mortgage loans which relate to extending the term of the loan. This is part of the Law 2 / 1994 of March 30 on Subrogation and Amendment of Mortgage Loans, which has been subject to significant changes especially in 2003.
In addition, the Government has promoted an agreement with the various institutions (represented by the AHE, the AEB, the ECSC, UNACC and ASNEF) with the College of Registrar of the Property and Commercial Property in Spain and the General Council of Notaries of Spain, to ensure no Notary and Registrar costs attached to such amendments of the loans. This agreement has mainly affected the Law 2 / 1994 of March 30 on Subrogation and Amendment of Mortgage Loans, whose art. 8 refers to notary and registration fees in subrogation, amending novations and cancellation of credit or mortgage loans.