We want to buy a second home between three siblings. We are in the process of applying for a mortgage that would have only one owner. Can it be done?

Source: El Confidencial

We want to buy a second home between three siblings. We are in the process of applying for a mortgage that would have only one owner. The bank tells us that we could not register the property, only the mortgage holders. Is it true?

The doubt about the registration in the Property Registry of a property with several co-owners and the granting of the mortgage to only one of the owners is very recurrent.

As far as legal limits are concerned, the registration of a property in the name of several co-owners and the existence of a mortgage only in the name of one of them is within the legal framework, since there is no obligation for the owner of the property to be the same as the owner of the mortgage.

While it is true that it is likely that the bank will only grant the mortgage if all the owners of the property are listed, since this gives it greater security.

It may also be required as a requirement to be able to sign the mortgage in the name of only one of the co-owners that the co-owners who will not be subject to the mortgage give their consent, thus becoming what is commonly known as “non-debtor mortgagors.”

In conclusion, although there is no impediment for the mortgage to be registered only in the name of one of the co-owners of the property, it is quite likely that the bank, in its power of disposition, will not agree to the granting of the mortgage under these conditions.

Additional notes:

• The text mentions that the bank may require the co-owners who will not be subject to the mortgage to give their consent. This is because the mortgage will be a lien on the property, and the co-owners who are not subject to the mortgage will still have an ownership interest in the property.
• The text also mentions that the bank may not be willing to grant the mortgage if only one of the co-owners is liable for the debt. This is because the bank will want to be able to hold all of the co-owners responsible for the debt if necessary.

I hope this is helpful! Let me know if you have any other questions.