Completions Department

Hi all, we have received a letter today re our completion on La Terrazas. The info is quite well put together with NIE info forms etc. On reading through it appears that Polaris are saying that they can put us in touch with Bank of Valencia and subrogating to the builders loan rather than applying from a fresh mortgage. Does anyone else have any experience of this offer as I have searched and cannot find anything that will help? they are saying we will save on registry, notary and taxes???

Many thanks

LC

Dear LC,

If you take over the existing mortgage (I assume this is the one of Banco Valencia), then you do save in taxes and fees, because the value taken in consideration (for most taxes/fees) is the difference between the existing amount of the mortgage and the amount you apply for. The main tax (IVA - VAT) will not be different.

On the other hand, you should be careful with other conditions (setup fee, interest rate, etc) as sometimes the "saving" is less that the "other costs".

Regards

Hi,

   I too have received the same letter from Polaris World as my apartment is now completed and it should go through at the end of March. I've emailed my solicitor in Spain to see if he can get the details of the rates etc.. that Bank Valencia offer, should we take over the builders loan.

I'll let you know if I find anything out!

J

HI J,

that would be great. We are in the process of looking for a mortgage at the moment via a 3rd party, so was just wondering what these terms were. The last post from the solicitor did say to watch for terms, interest etc so a tad wary.

If you don;t mind me asking who have you used for your solicitor, we have emailed several but no response as yet its been a couple of weeks so time is ticking, if you have someone you could recommend that would be great.

Thanks

LC

Hi LC

I have been using 'Diana Zuuring'

They seem to be ok so far but I can't fully recomend them yet as I have not completed.

Im not exactly sure what happens now as Polaris World have not given an exact date. I'll see what my Solicitor says!!

J

Hi LC, I Agree with Albolex, the developers mortgage is worth considering but it is very important to get all info in regards to the conditions and terms; I also believe that Bco Valencia requires you to take (hefty) Life Assurance as a condition of the mortgage, this has certainly been the case previously and can eat into those up front savings!

Hope that helps,

I emailed Bank of Valencia this morning and they have emailed me back. Here is what they said:

Here is the second email I received from them, not sure where all of the savings are meant to come from..........

Great thank you for your help and guidance. I have emailed Banca myself after your post yesterday so hopefully hear something very soon. Any extra details I receive I will post also. Thanks again for you help.

Many Thanks

LC

Hi All,

Just to reply to the last post of jc123, re email from Bco Valencia; the info is not quite correct as when taking the developers mortgage you do not have to pay the tax on the amount borrowed (stamp duty) because this has already been paid by the developer!  I also recommend enquiring about the life assurance with the bank as sometimes you do not find out about this until you get to the notary! If they do require this as a condition of your mortgage it will not be cheap and there are better deals out there, even at 70%!

Hope above helps,

Thanks Sharon. I'll look into it. Thing is, I'm running out of time. Polaris have told me that I can subrogate the to the builders loan with bank of Valencia however from what they are telling me it just seems like a new mortgage to me.

J

Glad to be of help J,  end of March is plenty timescale however if the Bco Valencia product ticks all boxes for you then I see no reason to go another route!

ATB,

Cheers Sharon, I noticed that Dave recomended you on his blog. I was just about to email you until I realised you were the Sharon I was already speaking to you on hear :-)

The Bank of Valencia deal does seem to suit me. I like the fact that there is no early redemption charges as I will be looking at paying a chunk of it off if and when the exchange rate gets a better for us.

Jason

No worries Jason, if it suits, that's the main thing - just about all banks do not penalise you for making partial / lump sum payments; this is an important point due to, as you mention, the exchange rate issue!

Hi Sharon, I emaild the bank and asked why I would still have to pay the tax and fees if I am subrogating the mortgage. Here is what they sent back. What do you make of it?

Hi J,

Well it certainly tells me they are offering a new mortgage and you will not be subrogating the developer loan - Is this still going to be with Bco Valencia is a question that springs to mind?  Their first email to you states that Bco Valencia has funded the development and this indeed intimates that the mortgage is in place ready for you to subrogate, as is the norm.  In the second email from them they still refer to the mortgage as the builders loan  even through their opening sentence expalins it will be a new mortgage. If you are using a lawyer I would ask them to get clarity on the situation for you.   You could also ask Bco Valencia why they are not offering the original mortgage under subrogation terms. 

If it is a new loan then the sole upfront savings are on the valuation fee and the opening commission being half (1% is usual) however the life assurance, which will be per named on the purchase contract and the payment protection insurance could well wipe these savings out.

Sorry could not be of more help,

Hi Could anyone help me with an e-mail address for Bank of Valencia in Torre P? Regards

Your help is much appreciated Sharon.

I have come to the conclusion that subrogating the builders loan is a load of *****. Polaris World say that we can and the bank are trying to cover up that they cant. I sent them this email:

You are welcome J,

So there is a mortgage available for the taking, just not as expected! Seemingly the letter from PW is somewhat misleading as it states (saladstar original post) you can subrogate the builders loan rather than apply for a fresh mortgage and save on taxes, notary, registry fees. With a 'new' mortgage these savings will not apply. Again it would be interesting to get clarity from a lawyer on this;  as under normal circumstances when opting NOT to take the developers mortgage (which is for sure attached, as can be seen on the nota simple) and choosing an independent bank product, the developers mortgage has to be cancelled (developer ultimately pays the cancellation fee) and the new mortgage registered on the deed.  In essence it looks like a Bco Valencia charge (builders mortgage that you cannot subrogate(!)) will be removed and a new Bco Valencia mortgage will be added!

 That is a bit odd though I'm about to complete on a phase 1 property and we're subrogating, But that's through Bancaja so maybe its more to do with the bank than Polaris.