Mortgage and selling...

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Mortgage and selling...

Post by Angela Fuller on Tue Jan 13, 2015 8:49 am

Can anyone, mentioning no names in particular, advise me as to whether you can advertise a property for sale that has a mortgage on it....My OH is a little older than me (20yrs) -( doesn't look it or act it ), and has in the past had a few health issues. We were considering moving from not such a rural location to maybe a ground floor, ideally with some outside space but walking distance from shops etc....We did take a mortgage out on our present house nearly 10yrs ago and it will be paid in full Oct this year.  As properties are not selling I was thinking the sooner we advertised it the better but I am unsure if you can advertise for sale if there is a mortgage involved.....Any advice would be much appreciated....
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Re: Mortgage and selling...

Post by Gala Placidia on Tue Jan 13, 2015 9:07 am

Angie, there is no problem. The mortgage issue can be settled  by the notary at the sale of the property. The buyer will provide two different cheques or transfers. One for the bank who holds the mortgage, covering all amounts due, and the other one for yourselves, for the balance. We do not have a mortgage, but the previous owner had it and this is exactly what we had to do. 
Also, I think that you are making the right move at this stage.To be able to walk to the shops, post office, doctors and town hall is great, even if you have to reduce the size of your home and garden. We all go through different stages in our lives and we have to look at what is more convenient for us at the relevant stage. You should look as well at public transport availability. Good luck!
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Re: Mortgage and selling...

Post by Flip on Tue Jan 13, 2015 9:11 am

Hi Angela, a friend of ours is Advertising her house for sale and she has a Mortgage with Unicredit. Her agent said it was OK as if/when it is sold you get a settlement with the Bank drafted up for any outstanding monies, similar to what happens in the UK, but knowing Italy it will probably be more involved and costly.
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Re: Mortgage and selling...

Post by stevegwmonkseaton on Tue Jan 13, 2015 10:15 am

Sounds like others have read the same as me, that it is not uncommon as per Gala's reply. October is really not too far off in the scheme of selling and buying, so hopefully it will not be an issue. Seems a sensible thing to be thinking about, we certainly intend to eventually end up doing the exact same, just don't know when...

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Re: Mortgage and selling...

Post by modicasa on Tue Jan 13, 2015 1:49 pm

There's no problem at all.  You can also sell the house with the mortgage to the new buyers if they want, and they take it over.  What usually happens is that when you get the caparra at compromesso you run off to the bank and pay off the mortgage, so that when the notaio does the visure ipotecarie the house is clean.  Failing that, the buyers write two cheques at atto, one to you and one to the bank with the outstanding amount - you all go to the bank after the atto and extinguish the mortgage there and then.  Its not difficult, just make the sure the notary knows.

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Re: Mortgage and selling...

Post by Angela Fuller on Wed Jan 14, 2015 6:10 am

Thank you all for your input, we shall now start preparing the house to put it on the market in the Spring.  I live in a renovated 200yr old stone house with no damp proofing, how does the energy rating survey cope with that and when does it need to be done ?
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Re: Mortgage and selling...

Post by modicasa on Wed Jan 14, 2015 6:32 am

You need your APE asap - technically your agent needs it when he lists the house.  You will need it for the compromesso.   How it is calculated is known only to the 'abilitati' whose only abilitazione seems to be the possession of colour printer.

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Re: Mortgage and selling...

Post by Angela Fuller on Wed Jan 14, 2015 7:04 am

Thx Modi, does the selling agent arrange for it to be done or do you have to do it yourself ?  Can you please remind me what it involves....checks and the like, for instance, my boiler has not had any checks done on it for years.....drainage is a bit of an issue....both could be sorted but funds are a little limited just now....
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Re: Mortgage and selling...

Post by modicasa on Wed Jan 14, 2015 8:04 am

You are responsible for the APE - and that is the certificate that shows how energy efficient your house is.  Its not something you can fail - it just 'is'.      It has nothing to do with the certification of your electrical system, boiler, water, plumbing etc, which is all separate.  Your boiler will need to show that it has been serviced annually, or you might have to say there is no heating system.  Your electrics have to show that they were legal when they were done.... Your agent should give you a list of things to do--- the APE you need asap, the rest you need by the time of the atto.

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Re: Mortgage and selling...

Post by Angela Fuller on Wed Jan 14, 2015 10:04 am

Modi, or anyone, last question.....Who do I go to to get the APE ?...and approx how much does it cost ?  Many thx....
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Re: Mortgage and selling...

Post by Admin on Wed Jan 14, 2015 10:24 am

Mine cost €300 when I had it done to sell my house. It is usually a geometra who has done a special course who does it. If you ask the agent they will usually know someone local who can do it. Just make sure they give you a price before they do it.
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Re: Mortgage and selling...

Post by stevegwmonkseaton on Wed Jan 14, 2015 2:40 pm

Not too sure how valid it was, but if it's the rating (APE), our seller just signed/certified hers as the lowest....  scratch

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Re: Mortgage and selling...

Post by modicasa on Wed Jan 14, 2015 3:57 pm

Depends on your square metrage.  When they first started tecnicos charged the earth, now it should cost around 150 euros unless you live in a palace.  A geometra, tecnico or ingegnere can do it.  There are also online services that do them.    
Its no longer allowed to be self certfiied - you need 2 copies signed by the abilitato that the notaio must have.

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Re: Mortgage and selling...

Post by Angela Fuller on Wed Jan 21, 2015 10:12 am

Sorry, but another question.....When you sell do you pay tax on the sale to the government.....and if so, how much ?
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Re: Mortgage and selling...

Post by Admin on Wed Jan 21, 2015 11:21 am

That depends. Is it your main home, will you be buying another here in Italy, have you owned it more than 5 years?
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Re: Mortgage and selling...

Post by modicasa on Wed Jan 21, 2015 11:57 am

If its a second home you are eligible for capital gain on the profit for 5 years from the date of purchase.  If its prima casa, and you have have had residence there for more than half the time that you have owned it in the first 5 years theres nothing to pay.

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Re: Mortgage and selling...

Post by Angela Fuller on Wed Jan 21, 2015 12:14 pm

Thx Modi and Penny,  It is our prima casa, we have owned it for 10 years, I am not a resident but OH is......
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Re: Mortgage and selling...

Post by Gala Placidia on Wed Jan 21, 2015 12:38 pm

Angie, there is no capital gains tax in Italy, providing that you have owned it for more than 5 years.
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Re: Mortgage and selling...

Post by Vicino on Thu Jan 22, 2015 7:31 am

Well done if you have made any capital gain ! I think the market appears very sluggish still, but, with the current GBP/EUR exchange rate, there may be increased interest from people from the UK.

Angie, you mentioned that 'we have owned it for 10 years', (implying that you own 'half'?) and you are NOT resident, that's interesting, I assume the same no capital gains rules apply to your half of the property ?

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Re: Mortgage and selling...

Post by Gala Placidia on Thu Jan 22, 2015 7:40 am

The "no capital gains tax after 5 years ownership" applies to both residents and non-residents. 
As Vicino said, the market is sluggish and prices have come down considerably. On the other hand, as you intend to buy another property in Italy, you would be able to find a few bargains and plenty to choose from. You may loose some money on the sale, but you will also get a good price on your new purchase. Good luck!
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Re: Mortgage and selling...

Post by Angela Fuller on Thu Jan 22, 2015 7:51 am

Hi Vicino,

Yes I too am hoping the exchange rate may entice a few more from the UK...I did not become a resident as worked in the UK and commuted too and fro (spent more time there than here) but have recently taken (very) early retirement......to spend more time here with OH and animals......I too wonder whether capital gains tax will be applied to my half....I also have the mortgage, will be paid in full come Oct this year....just wanted to start marketing the house sooner rather than later due to the sluggish market..
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Re: Mortgage and selling...

Post by Angela Fuller on Thu Jan 22, 2015 7:54 am

Thanks Gala for that info, another worry not to worry about....Everthing here does seem to be complicated...nothing is simple.....!
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Re: Mortgage and selling...

Post by stevegwmonkseaton on Thu Jan 22, 2015 10:03 am

I'm sure you will manage fine Angela. Look on it another way, it's not often we buy and/or sell, so it's not surprising we have to find out what to do. I think you would find a lot has changed in the UK in the last 2-3 years, let alone 10. We were most surprised as we had not done either in 30 years and then did both!

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Re: Mortgage and selling...

Post by Angela Fuller on Thu Jan 22, 2015 10:23 am

Hi Steve,  Thx for that....I know 'sellers packs' were being introduced in the UK some years ago, have there been more recent changes in the last 2-3 yrs....?
I suppose tightening up was bound to happen, maybe not a bad thing but all is an expensive business so it seems.....
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Re: Mortgage and selling...

Post by Panner on Thu Jan 22, 2015 12:29 pm

I thought I had posted this earlier today. Seems to have disappeared so had to redo it.
 
Whilst there may be no capital gains tax in Italy there may be a CGT liability in the UK if you are or have been UK Tax Resident.
 
Unless the property is a principle private residence (PPR)  throughout the period of ownership (apart from the last couple of years) a Capital Gain (or loss) (computed on UK tax principles and using rates of exchange relevant at the time payments were made/proceeds received) will arise. If qualifying as a PPR for part of the period then a proportion is exempt.
 
If UK Tax Resident in the year of disposal then any gain will be liable to UK CGT. If non UK Tax Resident in the year of disposal but become UK Tax Resident subsequently after an absence of less than five complete tax years any gains arising during their absence on assets which they held before they left the UK will be taxable in the year of return.
 
For 2014-15 tax year the annual CGT exemption is £11,000 per person.

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