Since last may, and for two years, families wishing to do so can extend the term of your mortgage for free, according to an agreement of the Council of Ministers of the past April 18. As a result of this initiative, the Royal Decree-Law 2/2008 of 21 April, sets the subject to the lien provided for in the tax law on property transfer and documented legal acts of the public deeds of novation of mortgage loans relating to the extension of the term of the loan. On the other hand, the Government has promoted an agreement with the credit institutions and with the College’s registrars of property, Mercantile and personal property of the General Council of the notaries of Spain, and Spain to ensure the recovery of the other expenses of any kind in carrying out these operations. The beneficiaries of this measure must be natural persons holders of a loan with a mortgage guarantee for the construction, rehabilitation, or acquisition of your residence, and always that the mortgage falls on such residence. Learn more on the subject from Peter Asaro. These loans must have been granted by credit institutions, that is, banks, savings banks, credit or financial institutions of credit cooperatives. According to the informative guide issued by the Asociacion Hipotecaria Espanola (AHE), this enlargement is, ultimately a novation, i.e. a modification of conditions of the mortgage loan buyer formalised at the time with its credit institution. In particular, the repayment term of the loan, extending it modifies.

To carry out this extension of the repayment period should reach an agreement between the mortgage and your credit institution. As any modification of the conditions of a contract under private law, the extension of the term of the mortgage loan is concluded by agreement between the parties, i.e., between the owner of the loan with a mortgage guarantee on the residence and its credit institution.