The takeover is a contract that allows the buyer of a property (accollante) to take over the mortgage previously turned on by the seller (accollato), continuing to pay the residual installments provided by the amortization plan to the bank (collecting).
In what situations can the possibility of the mortgage take place?
The most typical situation arises when a construction company has signed a mortgage for the construction of the property and grants the buyer the possibility to take on the debt by continuing the payment plan with the bank.
How does the takeover work?
In order to resort to the mortgage loan the presence of three subjects is necessary: the seller / holder of a mortgage loan, the buyer, willing to take responsibility for paying the remaining debt and the credit institution, who will have to decide whether to accept that a new borrower replaces the old debtor.
Benefits of mortgage approval
The main advantage of the charge is the minimum cost of the transaction, which can range from 100 to 200 euros, thus avoiding having to bear the notary fees. The buyer will not have to sign any loan deed from the notary (average expense saved: 1500-2000 euros).
Another important advantage for those who buy is linked to the banking conditions previously obtained by the seller, especially when it comes to a manufacturer known to the institute and with a positive credit history.
Moreover, it will take over without having to bear the costs of a new bank investigation as they have already been paid previously and often it is a further significant saving, especially when bank charges amount to 1% of the amount paid.
Disadvantages of the assault
The disadvantage could be of the seller, as if not expressly provided for by the loan agreement signed with the bank, the transfer does not completely free the seller from the obligation to pay the future installments in case of insolvency of the collateral. The two debtors, in fact, are obliged in solidarity and the bank could also take action against the seller. In some cases, if the incoming borrower has a good income capacity and presents the guarantees from the bank, the bank can decide to relieve the transferor from all responsibility. In this regard there are two different types of mutual acceptance :
- Cumulative accumulation : the accolade remains in any case jointly and severally liable with the successor . As a result, if the new debtor does not have to repay the debt, the bank could take action against the first debtor (the seller).
- liberating takeover : the accolade (seller) is released from the bank by any obligation and the debt as well as all other charges are entirely transferred to the acquiring company (buyer).
Amollo mortgage, agrees?
To evaluate the convenience of the takeover it is important to compare the current market conditions with the conditions originally granted to the mortgage and to understand whether it is really so convenient to keep it alive or whether it is better to enter into a new mortgage. It could have been underwritten in a period in which bank spreads and other conditions were cheaper than today, but at the same time there could have been no advantageous constraints when compared with current market parameters. Therefore, consider carefully whether the takeover is cheaper than entering into a new mortgage.
In any case it is always useful to know in detail all the characteristics of the loan and ask for a meeting with the mortgage manager of the bank branch or ask for a professional advice from a professional before signing any type of contract.
Make sure you do not take a higher debt than you thought
There is a risk that should be careful: in the event that the current borrower was the builder of the property, in the (frequent) case that he had built more units in the same residential complex, it is necessary to verify that to the splitting of the various dwellings and consequently the original loan was divided by the amount relative to the single dwelling.
This verification is of fundamental importance for not being in the situation of having to pay the mortgage of other houses built. Sometimes it seems like an advantage to save on the notary, but then we forget to rely on a serious professional who protects us.
If you want to be sure that you are doing the right thing, whether it is a takeover, subrogation or new mortgage, ask our experts without obligation .