How much will they give me if I guarantee a loan with a property?

What is a simple note and what is it for?

A simple note (also known as a simple informative note or a simple registry note), is a document that contains information related to a dwelling: its identification, its ownership, its rights, its extension, nature and limitations, its charges and encumbrances… Although in Reality shows us data that coincide with those of the deeds of the house, they are simpler and easier to understand.

You will need this document if you want to buy a house and request a mortgage .

It is a legal document linked to a registry before a notary, and issued by the Land Registry. Although it is purely informative and has no legal validity (unlike the registration certificate), it is a really useful letter since, when purchasing a home, the simple note will help us get an idea of ​​its current status for legal purposes. . In turn, if we are going to apply for a mortgage, the bank could demand it from us; and also the notary, when we sign the deeds. And even more, you can provide us with information that the seller has not provided us: pending charges, participation fees, annexes...

What does a simple note contain?

This document must contain the following sections:

Property data: information on its location and cadastral reference, type of property and type of property, square meters, location, annexes -storage rooms, parking spaces- and adjoining elements. These data will be very useful for calculating community expenses or spills, for example.

Owner or owners: these are the data that tell us who their owners are, either in bare ownership or in usufruct.

Observations. Although it is interesting information, it is usually aimed at people linked to the legal environment, since it contains references to the location of the volume, book and page in which the property is registered.

Charges and encumbrances. This is a key element, since it tells us if the property has pending liquidations, embargoes, judicial auctions, non-payments in the IBI or in the mortgage... In addition, it is likely that it includes debts already settled, but not eliminated at the registration level. . Be careful, because possible hidden charges can increase the cost of housing: it is very important that you do not sign any contract without having consulted them.

Submitted and pending journal entries , where the documents in process appear, in case someone is in the process of registering the farm. These documents must be submitted in approximately two months.

Who can ask for a simple note?

In fact, it can be requested by anyone who shows an alleged legitimate interest. Or put another way: to express the interest of the query. The registrar will analyze said interest and estimate if it is legitimate; only then will it issue the document.

How to request a simple note?

In the first place, we can request it from the seller of the house, or directly from the registrar. For this you will have to provide some data, either registry (property registration number, municipality, exact location), or with the unique identifier of the registered property (or Idufir), which is like the DNI of. The farm and it is very useful when locating the document.

To request it ourselves, we can access Registradores.org and follow this route: Online registration > Simple note of a farm. We will have to follow the steps and pay an approximate amount of €10. It is important that when we do so we can prove that we are the owners of some right over the property: that we are owners or representatives of the owner, requesters of information, heirs, administrators, etc.

How much will they give me if I guarantee a loan with a property?

In general, with a home equity loan, you can get between 30% and 40% of the appraised value of the home that guarantees the operation. For example, if its value is 200,000 euros, they will lend you between 70,000 and 80,000 euros. 

It must be said, yes, that many companies set minimum and maximum limits on the amount they lend. We advise you to check how much money you could get with each one to assess whether that amount suits your needs.

How is the current value of the house calculated?

The entity will order the home to be appraised to find out its current value according to different factors. Many loan entities with the home as collateral offer a free appraisal, although sometimes they will ask you to bring a recent appraisal (which will cost you about 300 euros on average). To appraise the property to put as collateral, the following factors are usually taken into account:

• Age of the property. A new build home is generally more valuable.
• Location. If you are in a big city or a town.
• Market situation. Whether the real estate market is up or not.
• Characteristics of the house. Conditions, square meters, if it requires reform if it has extras (terrace, parking,...).

Requirements to contract a loan with a mortgage guarantee

To access these products you must meet a few requirements:

• Own a property in your name: generally, they will require that the property is already fully paid and free of charges or, at least, that 70-80% of its value is. It can be a house, commercial premises, an industrial warehouse, a piece of land...
• Be of legal age: 18 years old, although it will depend on the financial intermediary since on some occasions they will require you to be between 21 and 25 years old.
• Have income: although some entities do not require that you have a fixed income, it is always advisable to request a loan when you know that you will be able to pay it.

The houses that are put as collateral must be in populations with a minimum of 15,000 inhabitants, although it will vary according to the entity.

Can I get these loans with debt?

Yes, contracting one of these credits is one of the few ways to obtain financing if you are registered on a list of defaulters. In addition, unlike what happens with other loans with Financial Credit Institutions, they can give you mortgage-backed loans even if your debt is very high or you have pending liens.

Normally, the application and analysis are steps that are carried out within 24 or 48 hours, although the appraisal and notary signing may take a little longer. Typically, the process will take about a week or two.