Since last May and for two years, families who wish may extend the term of your mortgage for free, under an agreement of the Council of Ministers last April 18. As a result of this initiative, the Royal Decree Law 2 / 2008 of 21 April, establishing the non-liability to the tax provisions of the Law of Transfer Tax and Stamp of the deeds of novation of home equity relating to the extension of the loan. Moreover, the Government has promoted a deal with credit institutions and the College Registrar of Property, Commercial and Movable Goods of Spain and the General Council of Notaries of Spain, to ensure no other recovery of costs any kind in the conduct of these operations. The beneficiaries of this measure must be natural persons who hold an equity loan for the construction, rehabilitation or purchase of your residence, and always that the mortgage burden on the residence. These loans must have been granted by credit institutions, ie banks, savings banks, credit unions or credit institutions.
According to the information guide issued by the Spanish Mortgage Association (AHE), this extension is definitely a novation, ie a change of conditions of the mortgage that the buyer formalized at the time with its credit facility. Specifically, it amends the loan repayment period, extending it. To carry out this extension of maturity must come to an agreement between the person and his mortgage credit institution. Any changes to the terms of a private law contract, extending the term of the mortgage loan agreement is concluded by the parties, ie between the owner of the home equity loan on your primary residence and credit institution.