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Mortgages Tag

Costa Luz Lawyers > Posts tagged "Mortgages"

Penalty interest for delay in mortgage or loan payments

Do not pay delay/penalty interest more than 2% above the agreed interest rate of the loan or mortgage If the penalty interest for payment delay of your loan (personal or mortgage) is more than 2% above the agreed interest rate of your loan or mortgage, the judge must maintain the rest of the clauses of the contract and cancel the clause relating to delay/penalty interest.  Nothing can be charged to the consumer if the rate is more than 2% above the agreed loan rate. Why 2 percentage points? The Supreme Court in Spain has considered 2% as the maximum which will not imply...

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Spanish Timeshare industry being punished by the Supreme Court

The Timeshare industry is being heavily punished by the Spanish Supreme Court as, in most of the cases; contracts were drafted against formal requirements of the Law. The Supreme Court is condemning Timeshare companies to refund clients a proportional part of all payments made by them. Being the proportion based on the number of years that the timeshare has been used over a period of 50 years.  The Supreme Court is also condemning related financial institutions to refund amounts jointly and severally with the Timeshare companies. CostaLuz Lawyers have so far  helped clients in these timeshare developments:  Diamond Resorts, Club Primavera,...

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European Union Commission on the IRPH clause in Mortgage Loans

The European Commission, in its observations to the Court of Justice of the European Union (CJEU), has positioned itself in favour of people affected by the mortgage index, IRPH, which directly opposes the judgment of the Supreme Court on the IRPH index in Spanish mortgages. This index, known as the ‘Index of Reference of Mortgage Loans’, (IRPH), affected 1.3 million mortgages. In those mortgages the interest rate was linked to the IRPH and not to the Euribor. IRPH is calculated by taking into account the loan interest rates offered by all financial entities and has always been much higher than the...

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Banks must pay Stamp Duty Tax on Mortgage Loans

The Spanish Supreme Court has recently ruled that the person who must pay Stamp Duty tax due on the registering of the public deeds of mortgage loans is the lending entity and not the borrower. In a Court Sentence dated 16 October 2018, the Supreme Court modifies its previous Case Law and interpreting the consolidated text of the law on property transfer tax and stamp duty tax, concludes that the borrower is not the taxpayer of the latter tax in the deeds of mortgage-backed loans. But the entity that provides the corresponding loan. It considers that the transaction subject to registration is...

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Is your property being repossessed?

Read the below legal tips  by CostaLuz Lawyers: • Any notification to the debtor must have been practised by the courts after investigation of different possibilities. It is not enough if the Court just tries the foreign address in Spain which was mentioned on the deeds. • Action taken cannot be based on an illegal or abusive clause (floor clause, early expiry clause, debtors’ interests’ clause…) • Law has imposed Bank a minimum value (50% of auction value of the property) for the event of repossession by them after an auction with no bidders. If your debt is below that minimum     ...

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Help in foreclosure procedures

The Advocate General of the Court of Justice of the European Union (CJEU) has recently issued his expert conclusion on five questions referred by different Spanish Courts, the Supreme Court among others, in regards to early maturity clause contained in mortgage contracts. What is an early maturity clause? It is a clause by which Bank can claim the whole debt just after a minor default (one installment) by the mortgage debtor What did Spanish Courts ask the European Court? In an scenario where a foreclosure procedure was started after many unpaid mortgage installments BUT based on the existence of a clause on the mortgage...

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What a foreigner must know to buy a property in Spain

To buy a property is not an easy task, but if you know the steps to take, and get the right advice from the suitable person, you could obtain a big advance in this section and definetly a safe option to not to be wrong at the moment of buying a property The purchase of property abroad continues being a guideline at historical highs of property purchase by trimester of years before and has rised up to a 15% by international investors Each person who has decided to invest in property in this territory must know all alternatives and prices to avoid...

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List of all abusive clauses that a mortgage may contain

Clause of limitation to the minimum interest rate (floor clause): It is usually located in the stipulation 3 bis with the denomination. "Límite a la variacióndeltipo de interés variable” It usually coexists with another upward limit (or ceiling). The abusiveness of the clause due to imbalance arises when there is a disproportion between the floor and the ceiling so that it is the Bank that is covered against the mortgagor. 87% of mortgage users were not informed by their bank of the inclusion of said clause Multi-currency clause: The Supreme Court, in its Judgment of November 15, 2017,...

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