Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 21.06.2013, 15:17
Junior Member
 
Join Date: Jun 2008
Location: Zurich
Posts: 65
Groaned at 9 Times in 3 Posts
Thanked 28 Times in 6 Posts
2states has made some interesting contributions
Sell property on mortgage

I tried looking for this but no easy way to find the answer. The question being - has anyone had an experience of selling a property or apartment that has a mortgage on it ? How does it work ? Is the mortgage transferred to the new buyer ? Are there any penalty or fees for this ?
Reply With Quote
  #2  
Old 21.06.2013, 15:19
grumpygrapefruit's Avatar
Forum Legend
 
Join Date: Feb 2007
Location: Zuriwest
Posts: 6,072
Groaned at 37 Times in 36 Posts
Thanked 15,735 Times in 4,121 Posts
grumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond reputegrumpygrapefruit has a reputation beyond repute
Re: Sell property on mortgage

You sell the property and pay off the mortgage. Hopefully there something on top that you keep!
Reply With Quote
The following 5 users would like to thank grumpygrapefruit for this useful post:
  #3  
Old 21.06.2013, 15:22
Sean Connery's Avatar
Forum Legend
 
Join Date: Nov 2011
Location: Zurich
Posts: 4,905
Groaned at 54 Times in 50 Posts
Thanked 6,405 Times in 2,936 Posts
Sean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond repute
Re: Sell property on mortgage

It's very normal. You can transfer the mortgage on to the buyer (I think this avoids fees) or you can settle your mortgage (this may attract fees).

The buyer's bank will transfer the purchase amount to your bank and you'll get any remainder.

If there is a profit made, your local taxman will be writing to you so ensure you have lots of receipts for work done on the house over and above the annually-permissible amount you can levy on your normal tax return.
Reply With Quote
This user would like to thank Sean Connery for this useful post:
  #4  
Old 21.06.2013, 15:25
tom tulpe's Avatar
Forum Veteran
 
Join Date: Jul 2011
Location: Horgen
Posts: 1,189
Groaned at 21 Times in 19 Posts
Thanked 1,409 Times in 646 Posts
tom tulpe has a reputation beyond reputetom tulpe has a reputation beyond reputetom tulpe has a reputation beyond reputetom tulpe has a reputation beyond reputetom tulpe has a reputation beyond repute
Re: Sell property on mortgage

Quote:
View Post
I tried looking for this but no easy way to find the answer. The question being - has anyone had an experience of selling a property or apartment that has a mortgage on it ? How does it work ? Is the mortgage transferred to the new buyer ? Are there any penalty or fees for this ?
You pay off the mortgage, plus any early repayment penalties (check your documentation). The buyer will want evidence that cancellation has been agreed and the mortgage been paid - if it is paid off with buyer's funds, the mortgage documents and/or the purchase price (or at least the portion that will pay off the mortgage) will be held in escrow by the bank, a lawyer or the notary, depending on which canton the property is in.
Reply With Quote
The following 2 users would like to thank tom tulpe for this useful post:
  #5  
Old 21.06.2013, 15:28
Forum Legend
 
Join Date: Sep 2006
Location: SZ
Posts: 9,885
Groaned at 24 Times in 23 Posts
Thanked 22,128 Times in 7,078 Posts
meloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond repute
Re: Sell property on mortgage

As GG says, you usually pay off the mortgage from the proceedings of the sale.

I've run across a few sellers who wanted the buyer to take over their mortgage, though. To me this is a huge negative, and I've walked away from properties I otherwise might have bought because the seller insisted on this point.

Given today's low rates there are few older mortgages out there that would be to a buyer's advantage to take over.

And... to me, a seller asking for a mortgage takeover is signalling desperation. When I see that I start sharpening my negotiating pencil.

Why make the deal more complicated than it needs to be? As a buyer, simplicity is a selling point.


(Bear in mind not all buyers think like I do. )
Reply With Quote
This user would like to thank meloncollie for this useful post:
  #6  
Old 21.06.2013, 15:35
jbrady's Avatar
RIP
 
Join Date: Apr 2007
Location: Sunny Aargau
Posts: 1,045
Groaned at 14 Times in 9 Posts
Thanked 719 Times in 359 Posts
jbrady has a reputation beyond reputejbrady has a reputation beyond reputejbrady has a reputation beyond reputejbrady has a reputation beyond repute
Re: Sell property on mortgage

Sold my house in March.
I tried to transfer it, but the other person did not want to do this as the interest rates were higher than currently available ones.

160K was on a 8 year fixed, the rest (180K) on a 5 year fixed.

I got hammered for 27K in penalties - 4 years left on the 8 year part and one year on the 5 year part.

Just doing the Gewinsteuer - capital gains - and I am praying this can be deducted.

Be careful what you sign - I was given bad advice regarding the 8 year fixed mortgage - I would have been better waiting 3 or 4 years before seling the house (but had no choice due to health issues)

Basically, it seems that you should sell the house in the last year of the fixed mortgage to keep the penalty down to the minimum.

I will know better next time (probably never buy in CH again)

Be warned.

Also if you buy a house within 2 years, you can defer the Gewinsteuer.

Last edited by jbrady; 21.06.2013 at 17:03.
Reply With Quote
The following 2 users would like to thank jbrady for this useful post:
  #7  
Old 21.06.2013, 15:44
Sean Connery's Avatar
Forum Legend
 
Join Date: Nov 2011
Location: Zurich
Posts: 4,905
Groaned at 54 Times in 50 Posts
Thanked 6,405 Times in 2,936 Posts
Sean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond repute
Re: Sell property on mortgage

Quote:
View Post
Also if you buy a house within 2 years, you can defer the Gewinsteuer.
I believe this requires the next property to be the same or higher in price?
Reply With Quote
This user would like to thank Sean Connery for this useful post:
  #8  
Old 21.06.2013, 16:01
jbrady's Avatar
RIP
 
Join Date: Apr 2007
Location: Sunny Aargau
Posts: 1,045
Groaned at 14 Times in 9 Posts
Thanked 719 Times in 359 Posts
jbrady has a reputation beyond reputejbrady has a reputation beyond reputejbrady has a reputation beyond reputejbrady has a reputation beyond repute
Re: Sell property on mortgage

This is true.
First time I have done this - so I will update this thread once I have spoken with my accountant.

We have just found a small apartment in the same village for about 300 K - about half the price of what we received from the sale. Perhaps it works on percentages - maybe half price is half the Gewinsteuer?

Anyone else know how this is calculated?

Last edited by jbrady; 21.06.2013 at 16:02. Reason: spelling
Reply With Quote
  #9  
Old 21.06.2013, 16:46
Junior Member
 
Join Date: Jun 2008
Location: Zurich
Posts: 65
Groaned at 9 Times in 3 Posts
Thanked 28 Times in 6 Posts
2states has made some interesting contributions
Re: Sell property on mortgage

Quote:
View Post
You sell the property and pay off the mortgage. Hopefully there something on top that you keep!
But can you sell a property that you still dont fully own (as it has a mortgage on it) ?
Reply With Quote
  #10  
Old 21.06.2013, 17:01
Member
 
Join Date: Jan 2013
Location: zurich
Posts: 206
Groaned at 10 Times in 6 Posts
Thanked 165 Times in 76 Posts
user-name is considered knowledgeableuser-name is considered knowledgeableuser-name is considered knowledgeable
Re: Sell property on mortgage

Quote:
View Post
But can you sell a property that you still dont fully own (as it has a mortgage on it) ?
i also tend to doze off when people talk about mortgages, but the answer is yup.
Reply With Quote
This user would like to thank user-name for this useful post:
  #11  
Old 21.06.2013, 17:15
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,504
Groaned at 269 Times in 175 Posts
Thanked 16,019 Times in 6,799 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Sell property on mortgage

Quote:
View Post
This is true.
First time I have done this - so I will update this thread once I have spoken with my accountant.

We have just found a small apartment in the same village for about 300 K - about half the price of what we received from the sale. Perhaps it works on percentages - maybe half price is half the Gewinsteuer?

Anyone else know how this is calculated?
i can't speak for switzerland specifically, but a typical deferral scheme is that the gain is rolled over into the new asset.

for example, if you bought for 600 and sold for 800, you have a gain of 200.

when you buy your new place, you pay 300, and roll your gain into it so that your deemed cost is (300-200) = 100.

when you sell your place in the future for 400, you gain is calculated at 400-100 = 300 of gain.

Last edited by Phil_MCR; 21.06.2013 at 20:13.
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #12  
Old 21.06.2013, 17:22
Sean Connery's Avatar
Forum Legend
 
Join Date: Nov 2011
Location: Zurich
Posts: 4,905
Groaned at 54 Times in 50 Posts
Thanked 6,405 Times in 2,936 Posts
Sean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond reputeSean Connery has a reputation beyond repute
Re: Sell property on mortgage

Quote:
View Post
But can you sell a property that you still dont fully own (as it has a mortgage on it) ?
yes of course. Most people rarely clear their mortgage in Switzerland in order to avoid tax.

You do not have to pay off the mortgage before selling it but the banks will deal with each other and not you.
Reply With Quote
The following 2 users would like to thank Sean Connery for this useful post:
  #13  
Old 21.06.2013, 19:26
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,450
Groaned at 315 Times in 211 Posts
Thanked 9,929 Times in 3,493 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Sell property on mortgage

In Switzerland it is an easy matter to take your mortgage with you to put in your next property. You must tell your lender and get their approval of course. We did this quite painlessly and with minimal cost.
Reply With Quote
  #14  
Old 21.06.2013, 19:41
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 18,214
Groaned at 292 Times in 241 Posts
Thanked 15,932 Times in 8,860 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Sell property on mortgage

The legal costs of setting up a mortgage are several percent of the mortgaged sum, the document written to 'bearer' is actually valuable & should not be cancelled even if the mortgage is paid off.

If you take over some else's fixed deal, there should be a payment to you if the rates are above what's available in the market, or possibly a premium payable in the future when rates rise. A fixed deal is not sold at Par value & can be accurately valued or 'swopped'
Reply With Quote
The following 2 users would like to thank fatmanfilms for this useful post:
  #15  
Old 18.08.2016, 21:18
Cybersuz's Avatar
Member
 
Join Date: Aug 2009
Location: Dottikon Aargau
Posts: 235
Groaned at 2 Times in 2 Posts
Thanked 113 Times in 55 Posts
Cybersuz is considered knowledgeableCybersuz is considered knowledgeableCybersuz is considered knowledgeable
Re: Sell property on mortgage

Hi all,

I know this is an ancient thread but it is along the lines of what we need info on....

When selling a property, what costs are carried by the seller (over and above the commission for the estate agent)?

i.e what will it cost us to sell?

Any input appreciated
Reply With Quote
  #16  
Old 18.08.2016, 22:33
Today only's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Europe
Posts: 8,146
Groaned at 897 Times in 614 Posts
Thanked 10,151 Times in 4,834 Posts
Today only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond repute
Re: Sell property on mortgage

Quote:
View Post
Hi all,

I know this is an ancient thread but it is along the lines of what we need info on....

When selling a property, what costs are carried by the seller (over and above the commission for the estate agent)?

i.e what will it cost us to sell?

Any input appreciated
Whatever it costs you to end your mortgage; ask your bank for exact quote
Reply With Quote
This user would like to thank Today only for this useful post:
  #17  
Old 19.08.2016, 02:13
Mrs. Doolittle's Avatar
Forum Legend
 
Join Date: May 2007
Location: Aargau
Posts: 6,009
Groaned at 120 Times in 87 Posts
Thanked 7,037 Times in 3,328 Posts
Mrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond repute
Re: Sell property on mortgage

Quote:
View Post
Hi all,

I know this is an ancient thread but it is along the lines of what we need info on....

When selling a property, what costs are carried by the seller (over and above the commission for the estate agent)?

i.e what will it cost us to sell?

Any input appreciated
If you sell the property privately, there are obviously no selling fees paid to a third party. However, you may incur other costs such as a fee for an appraisal, (for example by the HEV), advertising costs, notary fees and possibly bank charges related to your mortgage. The latter will depend on the type of mortgage and the conditions.

There are some agencies selling properties who do not charge the seller a fee. They claim to build this into the selling price.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
CHF mortgage on EUR property GenevaCamper Housing in general 60 02.06.2014 10:44
Tax relief on unoccupied UK property with mortgage esctosh Finance/banking/taxation 30 04.04.2013 22:21
Holiday property - mortgage minimum newtoswitz Housing in general 3 18.09.2012 15:46
Mortgage interest on unlet UK property sirhujardon Finance/banking/taxation 5 03.09.2010 10:01
Swiss mortgage on UK property? julianw Finance/banking/taxation 4 08.06.2007 14:54


All times are GMT +2. The time now is 09:05.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0