Would you like to sell a property that you have not yet finished paying off? Is it allowed, and what options are available? BIV Immobilier, your go-to estate agency in Liège, tells you more in this article.
Different possible scenarios
1. You sell, but you don’t buy a new home
Suppose you decide to put your property up for sale in order to move in with someone who already owns their home. You are perfectly entitled to do so, but you will have to repay your loan to the bank.
The simplest solution is to use the proceeds of the sale. Ideally, this amount should cover, or even exceed, your debt as well as any early repayment fee (indemnité de remploi – compensation paid to the bank when a mortgage is repaid early). If that is not the case, you will need to discuss the alternatives with your bank. If the bank considers the risk too high, it could refuse the sale of your property. So remember to ask in advance for the exact balance outstanding.
2. You sell, and you buy a new home
Several options are open to you here:
- You have found a buyer and you use the proceeds of the sale to repay your bank (as in the 1st scenario). You can then take out a completely new loan. This can be advantageous if current rates are lower.
- You carry out a mortgage transfer. In other words, you link your current loan to a new property and the interest rates remain the same. This is an option to consider if you have attractive terms.
- You refinance your current loan, i.e. you adjust the monthly repayments, the term or the rate to suit your new property project.
3. You buy a new house before selling the old one
In this scenario, a bridging loan is the ideal solution. This is a temporary loan (often for 6 to 24 months) that allows you to finance your new property while waiting for your current property to be sold. The loan is repaid as soon as your property is sold.
Before embarking on your sale project, it is therefore essential to get the right information. Your notary, your bank and your estate agency are there to help you. In Liège, BIV Immobilier supports you at every step for a smooth and secure sale. Get in touch with us today.
Also read: How do you choose a good estate agency?
