Legal advice on the division of a home and a retail property

Questioner

Bought a shop with a house above. After advice from the notary, decided to split it. Business and private with associated house number 10 and 10a. Many costs incurred for this. Mortgage changed etc. Now we want to do some private renovations. It turns out that our mortgage provider has a lien on the entire property... which means that we cannot get a loan for the private renovations from another lender. If something were to happen privately or commercially, we would have to sell the entire property because of that lien. Is this normal? What was the point of the entire split?

Lawyer

Such a split can be useful if there are 2 separate financings where for each financing only 1 apartment needs to serve as collateral and not both apartments as is the case now. In addition, there is a fiscal advantage because the VAT on the costs of maintenance and possible renovation of the shop can be deducted.

Questioner

There are 2 types of financing: private and business.

Lawyer

In your question you state that the bank has a mortgage on both apartment rights. It may be that the mortgage was neglected with regard to the residential property, it may also be that there are certain cross-connections between the two financings, which means that the mortgage on both apartments must remain registered. I cannot judge that without loan documentation.

Questioner

After several emails I finally got a response from the bank. According to the bank it concerns 1 property. A house with residential shopping destination. The starting point is that the financing follows the goal, or in other words business goal is business financing and private goal is private financing. in our case it is split and a private and business financing. This is the most advantageous for you. However, it remains 1 property and parts cannot be sold separately. < this was the bank's response... Clear, too bad I don't get any response from the notary. Because I get the idea that the whole split story doesn't bring us anything, only the notary has become better off. So we have everything in order except the mortgage right has not been split. If we had been told all this clearly at the time, we would not have split. The bank also doesn't want to split, we can only pay off the entire mortgage privately and business, then we can switch...

Lawyer

The bank states that the parts are not separately saleable. If the building has been split into apartments by the notary (as I understood from your question) that is not correct. If necessary, please contact me directly.