Sale of our property despite an ongoing loan?

Hello everyone,

we have found a buyer for our house who would buy the property immediately.

Now we still have a registered land charge and an ongoing loan for the house.

With the proceeds from the property, we could repay the loan immediately.

Can the bank somehow still throw a wrench in the works and prevent the sale?

Or which points need to be considered, if any?

Of course, I can also ask the notary, but it is Sunday and I am curious And since we have never sold a house before, I am a complete amateur.

Best regards
Ostsee

Hello Ostsee,

if you sell your property, you must also terminate your loan. Your lending institution is not obligated to accept the termination, but in justified individual cases (and the sale is such a justified individual case) they must agree to the termination. As a result, the bank misses out on profits for the remaining fixed interest period, which you must reimburse to the bank as a "prepayment penalty." There are several calculators on the internet with which you can already calculate this considerable amount in advance. I hope you have factored this amount into the sale price?

If your loan has been running for more than 10 years, you can terminate it without a prepayment penalty, usually with a 6-month notice period. The best thing is to have a conversation with your financing bank. If you can offer the bank a replacement transaction (e.g., financing another property), they are often more lenient with the prepayment penalty.

Best regards