Share buy-out and equalisation loan in Belgium

The share buy-out loan: what is it for?

A share buy-out loan allows you to become the sole owner of a property you own with others. In practice, you buy out the other owner's share and pay them a sum, called the equalisation payment.

This situation mainly arises in three cases: a separation, a divorce or an inheritance between heirs. In each case, a notarial deed then settles the division.

Share buy-out loan: separation, divorce or inheritance

• After a separation : you keep the family home and buy out the share of your ex-spouse or ex-cohabitant.
• After an inheritance : you buy out the shares of your brothers and sisters or the other heirs.
• Between co-owners : you leave a joint ownership and become the sole owner.

In all cases, you first need the agreement of the other owners, then a deed of division at the notary's office. The notary also calculates the division duty, which in principle replaces the registration duties of a standard sale.

Your borrowing capacity with a single income

The key point of a share buy-out loan is often your ability to repay alone. Previously, two incomes sometimes financed the property. Now the bank analyses your budget with your income alone.

That is why the choice of bank matters a lot: some calculate your borrowing capacity more favourably than others. So start by calculating your borrowing capacity, then let's talk about your file.

Share buy-out loan: the Belgian rules to know

In Belgium, a share buy-out always goes through a notary. Three rules deserve your attention before applying for the loan.

• Division duty : dividing a property between co-owners gives rise to a division duty, instead of the registration duties of a sale. Its rate depends on the region, and your notary calculates it.
• Spouses or cohabitants : for spouses, the buy-out is part of the liquidation of the matrimonial regime. For cohabitants, it is part of the division of their joint ownership.
• Previous loan : when the new loan repays the old one, your ex-partner no longer has any commitment to the bank for that loan.

Share buy-out loan: why use a broker

A share buy-out often combines emotions, a tight schedule and legal questions. We therefore help you keep a clear view of the budget: equalisation payment, balance of the current loan, deed costs and new monthly payment.

Then we compare 7 banks, present your file to the most suitable ones and negotiate the conditions, for better chances of approval. In addition, if you have other loans, a mortgage refinancing can sometimes consolidate them in the same operation.

How your application works

A single point of contact to analyse, build and defend your file.

Frequently asked questions about share buy-out loans

Page written by Hypoprime, mortgage broker in Brussels. The financing of a share buy-out depends on your profile, the value of the property and the banks' policy; costs still need to be planned for. A complete analysis is essential. Warning: borrowing money also costs money.