Costs at Notary!

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This topic contains 21 replies, has 6 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 4 months ago.

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  • #51996
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi all

    I’m just about to complete on a new property and have recieved the costs that I will incur when signing at the notary. Most of the costs I can understand (if a little excessive) but the cost of arranging the mortgage at the notary is well over 4000 euro. Has anyone else experiences this or am I being sticked up?

    Norts

  • #63585
    Profile photo of Anonymous
    Anonymous
    Participant

    How much are you paying through the mortgage?, It’s a new one or you are subrogating in an existing one? Do that price include the compulsory appraising report? Fixed, variable, mixed interest rate?

    Cesar

  • #63586
    Profile photo of Anonymous
    Anonymous
    Participant

    the mortgage is 150000 which is a new one. I’ve paid for the report seperately. so this cost appears to just be setting the morgage up at the notary as I’ve also got to pay over 2000 euro to the bank for the mortgage set up with them! The mortgage is variable rate.

  • #63588
    Profile photo of Anonymous
    Anonymous
    Participant

    I am sure Cesar will give you a complete and professional answer. On my part WELCOME TO SPAIN, you will be stiched up from here onwards.

    Have a good siesta you will need it !!!!!!!!!!!

  • #63607
    Profile photo of Anonymous
    Anonymous
    Participant

    Ok, 4,000.00.- Euro in a 150,000.00.- Euro mortgage is far too much for a Notary.

    But I’m positive, the 4,000.00.- Euro the Notary is asking for do not only cover his fee but also official papers, copies, Faxes, Registry, different steps done in your behalf and what seems to be the clue… Taxes (AJD)

    First to bear in mind is the base taken to calculate every fee and cost.
    Even if your mortgage is for 150,000.00.- Euro, that’s not the base, which is usually calculated with the higher of the following values:

    1.- The mortgaged property does not only cover the amount given in the loan but also additional amounts as the bank charges, the maximum interests of one year (usually the initial rate plus an additional 5%), the moratory interests of two years (usually an additional 10%) and the estimate costs of a court action against you to recover the bank’s money in case you don’t pay in the agreed dates.

    2.- The value of the mortgaged property given in the appraiser’s report.

    So you may calculate that your mortgage base to calculate costs could be in fact 250,000.00.- Euro (more or less)

    Given this data I’ll give you an example of costs, but taking the tax rate and Notary and Registry fees applied in Asturias, where I live and practice as I don’t know where you are.

    So let’s take a Loan of 150,000.00.- Euro over a property valued in 250,000.00.- Euro:

    That will roughly cost you (without Bank charges and reports) the following in Asturias:

    Notary fee 300.00
    Copies (Usually 3) in official paper about 200.00 if nothing out of the ordinary in the deed
    Communications to registry made by the notary 50.00
    Official seals 50.00
    Tax declaration 125.00
    Other document management 250.00
    Faxes 20.00
    Property Registry 200.00
    Taxes (in Asturias 1%) 2,500.00

    So a total of 3,695.00.- Euro (No additional VAT is applied)… usually the Notario will ask you for a little more money to prevent unforeseen costs and after everything is done he will give every receipt and the remaining money back.

    Of course If taxes are not included in the 4,000.00.- Euro go there and make them thoughtfully explain you the different costs.

    Cesar

  • #63609
    Profile photo of Anonymous
    Anonymous
    Participant

    Would this 1% tax be the equivalent of the UK Stamp Duty?

  • #63610
    Profile photo of Anonymous
    Anonymous
    Participant

    Yep, more or less

  • #63611
    Profile photo of Anonymous
    Anonymous
    Participant

    Gracias 🙂

  • #63846
    Profile photo of Anonymous
    Anonymous
    Participant

    Many thanks for the breakdown in costs.

    The 4000 euro doesn’t include the tax! so there is definately something wrong.

    The property is in Alhaurin, its a new build so we have to pay 7% tax on it inaddition to the notary fees. does that sound correct?

    Many thanks again

  • #63646
    Profile photo of Anonymous
    Anonymous
    Participant

    Many thanks for the breakdown in costs.

    The 4000 euro doesn’t include the tax! so there is definately something wrong.

    The property is in Alhaurin, its a new build so we have to pay 7% tax on it inaddition to the notary fees. does that sound correct?

    Many thanks again

  • #63852
    Profile photo of Anonymous
    Anonymous
    Participant

    There is a cost calculator for completions on

    http://www.marbella-lawyers.com

  • #63652
    Profile photo of Anonymous
    Anonymous
    Participant

    There is a cost calculator for completions on

    http://www.marbella-lawyers.com

  • #63855
    Profile photo of Anonymous
    Anonymous
    Participant

    thanks for the link, do you know where on the site, as i can’t find it

  • #63655
    Profile photo of Anonymous
    Anonymous
    Participant

    thanks for the link, do you know where on the site, as i can’t find it

  • #63857
    Profile photo of Anonymous
    Anonymous
    Participant

    marbella-lawyers.com

    click on heading spanish property
    scroll down right hand side to purchase cost calculator

  • #63657
    Profile photo of Anonymous
    Anonymous
    Participant

    marbella-lawyers.com

    click on heading spanish property
    scroll down right hand side to purchase cost calculator

  • #63860
    Profile photo of Anonymous
    Anonymous
    Participant

    Bear In mind that the costs I’ve calculated are for a mortgage deed only (only between you and the Bank). If the Notary is also making the purchase deeds (And this is going to be done in a different deed) costs would be different.

    So ask them to specify what they are going to charge you

    Cesar

  • #63660
    Profile photo of Anonymous
    Anonymous
    Participant

    Bear In mind that the costs I’ve calculated are for a mortgage deed only (only between you and the Bank). If the Notary is also making the purchase deeds (And this is going to be done in a different deed) costs would be different.

    So ask them to specify what they are going to charge you

    Cesar

  • #63895
    Profile photo of flw
    flw
    Participant

    It may work different in other places, but in Andalucia the 1% AJD (Stamp Duty) on the mortgage is calculated on the total mortgage liability (mortgage capital + interests + arrangement fees + “foreseen” late payment penalties). This amount is dependent upon the rates applied and the number of years of the mortgage (i.e. total interest). On the average mortgage it is safe to take the principal and multiply it by 1.7% to get an approximation for the Stamp Duty liability.

    If these €4000 don’t include Stamp Duty, then I would say it seems an excessive amount. The Notary alone shouldn’t charge more than €500-€600 .

  • #63695
    Profile photo of flw
    flw
    Participant

    It may work different in other places, but in Andalucia the 1% AJD (Stamp Duty) on the mortgage is calculated on the total mortgage liability (mortgage capital + interests + arrangement fees + “foreseen” late payment penalties). This amount is dependent upon the rates applied and the number of years of the mortgage (i.e. total interest). On the average mortgage it is safe to take the principal and multiply it by 1.7% to get an approximation for the Stamp Duty liability.

    If these €4000 don’t include Stamp Duty, then I would say it seems an excessive amount. The Notary alone shouldn’t charge more than €500-€600 .

  • #63926
    Profile photo of Anonymous
    Anonymous
    Participant

    many thanks for all the advice – signing is sechduled for tomorrow, so hopefully it will become clear.

    Out of all this I think the most important thing is to ask as many questions as possible. Its to easy just to except what people say and not question it.

  • #63726
    Profile photo of Anonymous
    Anonymous
    Participant

    many thanks for all the advice – signing is sechduled for tomorrow, so hopefully it will become clear.

    Out of all this I think the most important thing is to ask as many questions as possible. Its to easy just to except what people say and not question it.

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