When parents die, the children normally receive a home as an inheritance, other assets and rights. But sometimes, the goods do not come alone, they can bring debts and the most frequent is usually the mortgage.
The heirs have two options, accept or reject the inheritance, but if it is accepted it is done with debts and rights, in the case of the mortgage, the heir must pay the outstanding balance of the mortgage.
Do you have to pay all the outstanding capital in one go? No. The heir must change the owner of the mortgage and put it in his name, and the bank must accept the change of owner, through a mortgage subrogation.
How is this procedure done? The heir must present the owner's death certificate or the will.
The death certificate is obtained in the corresponding Civil Registry. To obtain the will, the certificate of last wills is requested by presenting the 790 model in the territorial offices of the Ministry of Justice, and if there is a will, the name of the notary depositary of the same will appear, and there is also the declaration of heirs.
At that time and also before a notary, the award of the inheritance must be made.
The corresponding inheritance tax must be paid, which must be done in the office of the territory where the deceased had his habitual residence. If the deceased lived outside of Spain, the declaration must be made at the Madrid Tax Office, since in this case, the competence corresponds to the State. This must be done within six months of the date of death. This tax varies from Community to Autonomous Community, with different rates and bonuses.
You also have to pay the municipal capital gain.
The bank has the obligation to deliver all the information of the mortgage signed by the deceased
In the event that the inheritance is renounced, the public deed of resignation must be presented.
It is increasingly common for the mortgage to be linked to life insurance, if it exists, it will be the insurance company that pays the mortgage, for this the heir must present the documentation that certifies the death to the insurer and the bank.
In the case in which the mortgage has two owners, the heir must assume the part corresponding to the deceased of the mortgage, but if they reject it, the other holder must be the one who assumes the entire mortgage.
We hope we have helped you. At ASTONDO REAL ESTATE we have a specialized legal team that will help you in these steps