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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
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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%) 2,500.00So 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
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There is a cost calculator for completions on
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There is a cost calculator for completions on
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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 .
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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 .
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