How to Claim Back Mortgage Costs in Spain
Mortgage Expense Claims in Spain:
Are You Eligible?
If you took out a mortgage in Spain, especially before 2019, there’s a good chance you were charged expenses that you shouldn’t have been. Banks often bundled in costs like notary fees, land registry fees, and even certain taxes that should have been their responsibility, not yours. The good news? Spanish courts have been ruling in favour of homeowners, and you might be able to reclaim your mortgage expenses! (Even if you’re not a Spanish resident).
We have experienced a nearly 95% win rate for all mortgage expense claim cases.
The Backstory: Why You Can Claim
The key here is a series of rulings by the Spanish Supreme Court (Tribunal Supremo) and the Court of Justice of the European Union (CJEU). They’ve essentially said that many of the clauses forcing borrowers to pay all mortgage setup costs were “abusive.”
- Key Ruling (Example): The Supreme Court’s ruling, Sentence No. 705/2015, of December 23, 2015, is a landmark decision. While the specifics have evolved with subsequent rulings, this established the principle of abusive clauses.
- CJEU Influence: The CJEU has consistently upheld consumer rights in these cases, reinforcing the Spanish court’s decisions. This is important because it means there’s strong legal backing for these claims.
What Expenses Can You Potentially Reclaim?
This is where it gets a bit more detailed, but stick with me! Here’s a breakdown of the main expenses that might be reclaimable:
- Notary Fees (Gastos de Notaría): These are the fees for the official notary who oversees the mortgage deed. The courts have generally ruled that these should be split 50/50 between the bank and the borrower. Banks often charged the borrower 100% of these fees, making this a common area for reclamation.
- Land Registry Fees (Gastos de Registro de la Propiedad): These fees register the mortgage with the Land Registry. The courts have generally ruled that the bank should pay 100% of this.
- Gestoría Fees (Gastos de Gestoría): A gestoría is like an administrative agent who handles paperwork. If the bank imposed their own gestoría on you, you can likely claim these fees back (100%). If you chose your own, it’s less likely.
- Mortgage Appraisal Fees (Gastos de Tasación): These costs are a bit of a grey area. Previous to the Mortgage Law 5/2019, it was the bank that benefitted from the appraisal. However after the Mortgage Law, it is the customer that may benefit from it as they may shop around.
Important Note: The New Mortgage Law (2019)
In June 2019, a new Mortgage Law (Ley 5/2019, de 15 de marzo, reguladora de los contratos de crédito inmobiliario) came into effect. This law significantly changed who pays for what. If your mortgage is after this date, the chances of reclaiming expenses are much lower, as the law now clearly assigns most costs to the bank.
Are There Time Limits to Reclaim Mortgage Expenses?
This is VERY important. The deadline for claiming has been a subject of much debate. The general consensus among legal professionals, referring to Article 1964 of the Spanish Civil Code, is that the 5-year period to claim starts when the consumer is aware that the clause is abusive. This starting point could be considered one of the Supreme Court and CJEU rulings regarding abusive clauses and mortgage expenses. We are still having success with these claims.
How to Reclaim Your Mortgage Expenses
You have a few options to reclaim your mortgage expenses:
- Contact the Bank Directly: You can start by sending a formal complaint to the bank’s customer service department (Servicio de Atención al Cliente). Include copies of your mortgage deed, invoices for the expenses, and a clear explanation of why you believe you’re owed a refund. This is often the quickest route, but the bank may reject your claim.
- Use a Claim Company: Many companies specialize in handling these claims. They’ll typically charge a percentage of the recovered amount (a “no win, no fee” basis). While this can be convenient, make sure you choose a reputable company and understand their fees.
- Seek Legal Advice: Consulting a lawyer specializing in banking law is the most thorough option. They can assess your specific case, advise on the best course of action, and represent you in court if necessary. This is generally the recommended route if the bank rejects your initial claim or if the amount involved is substantial.
RECLAIM YOUR SPANISH MORTGAGE EXPENSES
Contact us today for a FREE, no-obligation consultation with an expert lawyer to discuss your eligibility.
What to Expect and Potential Challenges
- Bank Resistance: Banks may be reluctant to refund expenses, even if your claim is valid. They might try to delay the process, offer a lower amount, or reject your claim outright.
- Negotiation: Be prepared to negotiate, either directly with the bank or through your lawyer/claim company.
- Court Action: If the bank refuses to cooperate, you may need to take legal action, which involves filing a lawsuit (demanda). A lawyer is essential for this stage.
- Timeframe: The entire process can take anywhere from a few months to several years, depending on the complexity of your case and the bank’s response.
What Documents Do You Need?
- Mortgage Deed (Escritura de Préstamo Hipotecario): This is the main document.
- Invoices (Facturas): Collect all invoices for the expenses you’re claiming (notary, registry, gestoría, etc.).
- Proof of Payment: Bank statements showing you paid these expenses.
- Any Correspondence with the Bank: Keep records of any communication you’ve had with the bank regarding the mortgage.
Final Thoughts
Don’t let your hard-earned money stay in the bank’s pocket! If you think you might be eligible, it’s definitely worth investigating. Contact us today for a FREE, no-obligation consultation with an expert lawyer.
FAQ
My mortgage is in joint names. Can we both claim?
Yes, if the mortgage is in joint names, both borrowers can claim their share of the expenses.
I've already sold the property. Can I still claim?
Yes, you can still claim even if you’ve sold the property, as long as you were the borrower at the time the expenses were incurred.
What if I don't have all the original invoices?
Try to obtain copies from the notary, land registry, or gestoría. If that’s not possible, we might be able to use other evidence, such as bank statements, to support your claim.
Will claiming affect my credit rating?
Claiming back mortgage expenses is your legal right; it will not have any impact on your credit rating.
How much money can I claim back from my Spanish mortgage?
It depends on the amount of the original mortgage, but the average is between €1500 and €3000.
What mortgage expenses can I claim back in Spain?
Likely Reclaimable (Pre-2019):
- Notary Fees (50% usually)
- Land Registry Fees (100% usually)
- Gestoría Fees (100% if the bank imposed their gestoría)
- Mortgage Appraisal Fees ( Potentially, more likely for pre-2019 mortgages).
Am I eligible to claim if my mortgage has already been paid off or if I've sold the property?
Yes, you can still claim these expenses even if you’ve paid off your mortgage or sold the property. The right to reclaim isn’t affected by the current status of the mortgage or property ownership.
Do I need legal assistance to file the claim?
While it’s possible to file a claim independently, seeking legal assistance is advisable. A legal professional can guide you through the process, ensure all necessary documentation is in order, and represent your interests effectively, especially if the case goes to court.
My bank has rejected my claim for mortgage expenses. What can I do?
Contact us. We can assess the rejection, advise on your options, and potentially take legal action (file a lawsuit).
I've received an offer from the bank. Should I accept it?
Our advice is to consult a lawyer before accepting any offer. The bank’s offer might be lower than what you’re legally entitled to.