Posted in: Deeds Issues, Legal
In recent years, Spanish courts have ruled that many of the setup costs for mortgage loans should not have been imposed entirely on borrowers. This has led to many homeowners in Spain claiming setup costs for mortgage expenses in Spain. If you have taken out a mortgage in Spain, you may be eligible to claim a refund of certain costs.
Spanish jurisprudence, particularly following rulings by the Supreme Court (Tribunal Supremo) and the European Court of Justice, has clarified that some mortgage-related costs must be shared between the bank and the borrower. The key expenses that may be subject to reimbursement include:
1. Notary Fees: Costs related to drafting and authorising the mortgage deed.
2. Land Registry Fees : Fees for registering the mortgage in the public registry.
3. Administrative Fees : Costs paid to an administrative agency that handled the mortgage paperwork.
4. Property Valuation Fees :The cost of the appraisal required by the bank before granting the mortgage.
Borrowers who signed a mortgage agreement in Spain before June 2019 (when a new mortgage law was introduced to regulate cost distribution) may be entitled to claim a refund for improperly charged expenses. Even if the mortgage has already been repaid, you may still be eligible to recover these costs.
1. Gather Documentation
o Mortgage deed (Escritura del préstamo hipotecario)
o Invoices for notary, registry, and valuation fees
2. We submit a Formal Complaint to the Bank
o The first step is to send a formal request to the bank demanding reimbursement of the improperly charged costs.
3. If the Bank Refuses, File a Legal Claim
o If the bank rejects your request or does not respond within two months, you can take legal action in court with the assistance of a lawyer. We can help with this.
The average refund amount varies but can range between €1,000 and €3,000, depending on the mortgage amount and the fees paid. Molina Solicitors can check your documents and we can advise the costs if you have a claim. We do not make claims for under 800€.
The only time limitation is 5 years after you have won a Court case, but we claim for the refund when we take legal action so this time limitation is not a problem.
o Not all mortgage holders can automatically claim a refund.
o First, the clause in their mortgage contract (that made them pay all or most of the setup costs) must be declared abusive and therefore null by a final court ruling (unless the bank agree to settle out of Court)
o The action to declare the clause null has no time limit.
o This means a consumer can challenge the clause at any time, even decades later.
o But the legal claim for the refund of the money (once the clause is declared null) does have a 5-year deadline from that ruling. We avoid this by making the two claims in our legal action.
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🔁 Example:
• You took out a mortgage in 2010.
• You were made to pay €1,200 in setup fees.
• You never challenged it in court.
Now:
• In 2025, you file a case to declare the clause abusive. In 2026, you win — the court declares it null.
• Starting from 2026, you have until 2031 to receive the €1,200 refund as we would have claimed it and it has 5 years to be paid.
You don’t lose your rights just because it’s been more than 5 years since you got the mortgage. Nor because you have paid it off, or you don’t have a floor clause in your mortgage.
Just let us have your invoices and mortgage deed and we will check if the claim is eligible and the amount of the claim, for no charge.