Selling a Property with an Existing Mortgage
How to sell a home encumbered by a lender's legal charge and avoid unnecessary early repayment fees.
An existing mortgage is no obstacle
Selling a property with an active mortgage is a routine transaction. The purchase funds held in escrow are first applied to clear the outstanding loan balance; the lender then issues formal consent to remove the legal charge from the Land Registry, and the remaining proceeds are transferred directly to you.
Early repayment charges
When selling a property, you can settle your mortgage early with a fee capped at no more than 1% of the redeemed amount, up to a maximum of CZK 50,000. Repaying on the expiry date of your fixed-rate period is entirely free of charge.
Key considerations
It is essential to request a redemption statement from your bank in good time and coordinate schedules closely with the buyer's mortgage lender. We handle this entire liaison on behalf of our clients.