Combine two different mortgages in one?

Real Estate
1

Hello Mustachian colleagues!

My wife may be (as late as possible we hope but we must anticipate some points) obliged to inherit a property located in France that her mother (Swiss resident) had purchased via a Swiss mortgage of approximately 400kCHF (a first and second pillar, at 2%, without insurance or anything else).

The problem is that we may not want anything in France, and there would still be 7 years of mortgage remaining, so repaying the debt would cost nearly 50kCHF…

We were wondering if it was possible to sell the property, keep the mortgage and combine it with the mortgage we currently have on our flat (another bank…) and consider buying a larger or better located property?

Even with two different bank ?

Thank for your feedback

Sincerely yours

2

Selling the property and just paying back the mortgage is not an option ?
Normally this kind of clauses are included in the contract.

3

Thanks for the feedback
I was convinced that, selling the property and ending the mortgage before its end, must lead to the payment of all the interests which are due until the end of the mortgage.

4

You will have to check your contract if it is included or not. In French, I would look for something like “remboursemenet exceptionnel”. (I am assuming the contract is in French).

Kind of fun btw you say that “you are obliged to inherit”. Most people would be happy about it :stuck_out_tongue: In the worst case you still basically get a house for 50k which you can resell. (basically what I am saying : look at the positive side).

1 Like
5

France has inheritance taxes though. So worst case can be worse.

6

Sounds like the perfect question to ask to the bank. It could be that financing a property in France was a favor to your mom and that they might be happier to finance properties in Switzerland. Once you step out of your obligation with the bank prematurely (under conditions not foreseen in the contract), you will have to pay them their lost revenue.