Selling a property with a mortgage on it, step by step
You can sell a flat with a charge over it. The bank has to be involved, though, and it has the final say. We've set out the three routes this can take, and when repaying early costs you nothing extra.
What are the options?
Three. They differ in what happens to the existing loan.
- Pay off the mortgage out of the sale price. The most common route. Part of the money from the buyer goes straight to the bank, it closes the loan, and issues consent to remove the charge.
- Transfer the mortgage to the buyer. Makes sense when you have a favourable rate. The bank will still vet the buyer as a new applicant, though, and has to approve the transfer.
- Transfer the charge to a different property. If you're buying a new home at the same time, the bank may release the old charge and take a new one. This is also subject to its assessment.
The second and third routes stand or fall on whether the bank agrees. You can't count on either one in advance, not until you have it confirmed.
What does the process look like?
It starts at the bank, not at the listing. Without a figure for what you owe on a given date, you can't set the sale price or the escrow.
- Ask for a balance statement. The bank states the debt, the interest, and any early-repayment charge. The statement is always valid as of a specific date: if the sale date moves, you need a new one.
- Set up an escrow. With a lawyer or the bank. It makes sure the money goes to the bank and to the seller in the right order, and that the buyer doesn't pay into a charge that won't be removed.
- The bank receives its part and issues a discharge confirmation. This confirms the loan has been paid off.
- An application to remove the charge is filed with the Land Registry, based on the discharge confirmation.
- The Land Registry updates the record. It has 30 days to do so by law.
Removing the charge doesn't happen on its own. It's a separate step someone has to take, and you pay the fee for it.
How much will I pay for repaying early?
Often nothing, when it's a sale. Selling a property with a charge over it is one of the cases where the law says a bank may not charge a fee, provided at least two years have passed since the agreement was signed.
When two years haven't yet passed, a charge does apply, but it's capped by three limits at once, and the lowest one governs: 0.25% of the amount being repaid for each year or part of a year up to the end of the fixed-rate period, at most 1% of that amount, and at most the interest you would have paid up to the end of the fixed-rate period. We cover the other cases where no charge applies under our entry Fixed-rate period.
A different situation is a sale under pressure, when you can no longer keep up repayments. There, the deadlines set by law decide it, and there are more of them than you'd expect. We've set them out on our page I can't keep up my mortgage repayments.
On top of that, add the Land Registry's administrative fee for changing the record, which is CZK 2,000.
I'm selling and buying straight away. How do I link the two?
The hardest part is the timing, not the approval. The money from the sale arrives later than when you have to pay for the new home.
There are two routes. Either the charge transfers to the new property, so the mortgage carries on and only its security changes. Or a separate loan covers the bridging period and gets paid off once the sale goes through. Which comes out cheaper depends on the rate you have and how long a gap opens up between the sale and the purchase.
If you have a good rate, it's worth trying a transfer of the charge first. Losing an old low rate and taking a new one on today's terms tends to be the more expensive option.
Frequently asked questions
Do I have to tell the bank that I am selling?
Yes, and it is in your own interest too. Without the bank's consent to remove the charge, the transfer will not go through, because the buyer will not buy a property with someone else's charge still on it. The bank also supplies the balance statement, without which you cannot set the sale price.
What if the mortgage is higher than the sale price?
Then you have to make up the difference yourself, otherwise the bank will not issue its consent to remove the charge. This happens with properties that have lost value since purchase, or where you have only paid off a small amount of principal so far. The way round it is usually to wait, to make up the difference from savings, or to agree a different form of security with the bank.
Can the buyer take over my mortgage along with my low rate?
They can, but the bank has to approve them as a new applicant and confirm the transfer. There is no automatic entitlement to it. It makes the most sense where the original rate is well below today's offers, which is exactly why it is worth discussing this option with the bank before you agree a price.
Who pays to remove the charge from the Land Registry?
The seller, because the charge is their obligation. It is usually built into the agreement settling the sale price, so set it up in the escrow to make sure it is not forgotten. The administrative fee for changing the record is CZK 2,000, and the Land Registry has 30 days to carry it out.
Mortgage of CZK 4,000,000, fixed borrowing rate 4.99% a year, term 30 years (360 months), fixed-rate period 3 years. Monthly payment CZK 21,448, APRC 5.11%, total amount payable CZK 7,721,433.
Calculated with the rate valid on 1. 11. 2026. Your actual rate depends on your creditworthiness, the LTV and the market. A mortgage is a loan secured by a charge over the property, and failing to repay can lead to its sale. We will tell you the commission we receive from banks on request.