The right new flat won't wait for you, and your current one won't sell overnight. How do you finance the period between buying and selling in 2026, and protect yourself legally, without losing money or peace of mind?
In 2026, there are four main ways to finance buying a flat before selling your current one: a bridging loan (překlenovací úvěr), a mortgage secured on both the new property and the one you already own, deferred payment of the purchase price, or signing both transactions at the same time using escrow (úschova). The safest approach is usually to combine well-structured financing with a sale that is contractually linked to the purchase. The most expensive mistake is to buy without a fallback plan in case your current flat does not sell.
Why selling and buying at the same time causes so much stress and so many losses
When you move home, you are dealing with two transactions that depend on each other, yet each moves at its own pace. The ideal new flat often comes up before you have found a buyer for your current one. The seller does not want to wait, the bank wants a clear picture of your income and the properties pledged as security, and the Land Registry works to statutory time limits that cannot be shortened. Under time pressure, people end up selling below value, accepting unfavourable loan terms or paying two sets of costs for months. Yet the transition period can be planned just as carefully as the purchase itself.
Bridging loans and mortgages secured on your existing property
Bridging finance is a short-term loan covering the period between buying your new home and selling your old one. The bank releases the money for the new property straight away and gives you a set period, typically around two years, to sell the old one. Česká spořitelna, for example, quotes a two-year period for this product and, in its representative example, an interest rate of 6.09% a year fixed for two years, with an APR (RPSN) of 6.46%. Once the sale goes through, you repay the bridging part from the proceeds and the remainder is converted into a standard mortgage. Terms differ from bank to bank, so it is worth comparing current offers from several lenders.
The second option is a standard mortgage for which the bank accepts both the new and your existing property as security. The higher value of the collateral reduces the loan-to-value ratio, so you need less of your own money in cash. After selling your old flat, you reduce the debt with an early repayment and the bank releases the original flat from the mortgage. Have the conditions for this release set out in the loan agreement in advance; otherwise the bank may refuse to release it and you will have to explain to your buyer why the flat is not free of encumbrances.
How banks assess income and LTV when you own two properties at once
Under the Czech National Bank (ČNB) recommendations for Czech lenders, the upper limit for LTV – the ratio of the loan to the value of the collateral – on mortgages for owner-occupied housing remains 80%, or 90% for applicants under 36. From 1 April 2026, the ČNB recommends stricter limits for investment mortgages: LTV of no more than 70% and total debt of no more than seven times net annual income. A loan is treated as an investment loan if it is for a third or subsequent residential property, or for a flat intended to be let.
For anyone moving home, what matters is how the bank counts the properties they own. If you can prove that you are genuinely selling your current flat, the bank need not include it. In its methodology valid as of 25 August 2026, Komerční banka requires the sale to be evidenced by a signed reservation agreement, purchase agreement or future purchase agreement (smlouva o smlouvě budoucí kupní) before the loan is approved; a mere commitment to sell included in the terms of the loan agreement is not enough. You should also expect the bank to assess whether your income can cover the repayments on both loans at once for as long as they overlap.
Deferred payment of the purchase price and conditional purchase agreements
If you are in a strong negotiating position, you can agree with the seller to pay part of the purchase price later, for example within a certain number of months or once your flat has been sold. Sellers usually accept this risk only with security, typically a mortgage (zástavní právo) over the property being sold or a retention of title clause (výhrada vlastnického práva). Another option is a purchase agreement with a condition precedent (odkládací podmínka): the agreement takes effect only once an agreed event occurs, such as approval of the loan or the sale of your flat. Both solutions require precise wording on deadlines, on what happens if the condition is not met, and on how the deposit is returned.
Signing on the same day: how to synchronise both transactions using escrow
The most elegant scenario is to sign the sale of your old flat and the purchase of the new one on the same day, or at least in close succession, with the purchase prices deposited in escrow with a lawyer, notary or bank. Under the escrow terms, the money from your buyer can then go directly to the seller of your new flat. Ownership passes only upon registration in the Land Registry (vklad do katastru nemovitostí), and the registration takes effect retroactively from the day the application was filed. The Land Registry office may not make the entry until a 20-day protective period has elapsed, and it generally has 30 days to decide. The administrative fee is CZK 2,000 per application for registration, or 20% less if the application is prepared in the Land Registry Portal (Portál katastru) and filed electronically. The release conditions of both escrow arrangements must dovetail; otherwise the whole chain will stall at its weakest link.
What the transition period costs: interest, fees and paying for two homes
Borrowing is becoming more expensive this year. According to the Swiss Life Hypoindex, the average offered mortgage rate reached 5.51% in September 2026, and it has been rising steadily since its March low. Bridging finance may come on different terms from a standard mortgage, so ask for a detailed breakdown of both the rate and the fees. Your budget for the transitional period should include:
- interest on the new loan alongside repayments on your existing mortgage,
- valuations of both properties and fees for registering and removing the mortgage charges (zástavní právo),
- escrow fees and legal fees for both transactions,
- utilities, service charges for the building's repair fund (fond oprav), insurance and property tax (daň z nemovitých věcí) for two flats,
- any improvements to the flat you are selling, so that it sells more quickly and at market value.
When planning, allow a buffer in case the sale takes longer. Every extra month means more interest and further running costs for an empty flat.
What to avoid and who should manage the process
The greatest risk is that your flat does not sell within the period set by the bank, leaving you to sell under pressure. So set a realistic price from the outset, along with the point at which you will adjust it. The second risk is errors in the application for registration in the Land Registry (návrh na vklad), which prolong the proceedings and, with them, the drawdown of the loan. The third risk is early repayment charges on your original mortgage. For contracts concluded, or with a fixed-rate period agreed, on or after 1 September 2024, repayment upon the sale of the property is free of charge provided that at least 24 months have passed since the contract was signed. In other cases, the bank may charge no more than 0.25% of the amount repaid early for each commenced year of the remaining fixed-rate period, up to a maximum of 1% in total. The original rules still apply to older contracts, so check the date of your contract and of your most recent fixed-rate period. Do not forget income tax on the sale either: whether the sale is exempt depends, among other things, on how long you have owned the flat and whether you live in it.
The recommended sequence of steps is as follows:
- have your current flat valued and check with your bank or a mortgage adviser how much you can borrow under each scenario,
- choose your financing and agree the conditions for releasing the mortgage charge in advance,
- prepare the sale – documents, presentation and pricing strategy – before signing the reservation agreement for the new flat,
- for the new flat, negotiate deadlines that suit your situation, or a deferral of part of the price or a condition precedent,
- link the two transactions through escrow accounts with interlinked release conditions,
- once the sale is complete, repay the bridging loan or reduce your mortgage with an overpayment.
When a single person coordinates both transactions, they can see the whole chain: they know when the buyer will be ready, when the bank will approve the loan, and what deadlines can be promised to the seller. This helps most where time is tight, where higher-value properties with a smaller pool of buyers are involved, or where part of the offering is marketed off-market. It is important that the agent's fee and role on both sides are clearly agreed in advance, to avoid any conflict of interest.
Frequently asked questions
Can I get a mortgage on a new flat while I am still repaying the old one? Yes, but the bank will assess whether your income can support both loans at the same time, and will want to know whether and when you will sell the old flat. Evidence of the sale may help ensure that the new loan is not assessed as an investment loan.
How long will the bank give me to sell my old flat? With bridging finance, a period of around two years is common, although the exact terms vary by bank and product. Where both properties are mortgaged, the period is set by the loan agreement and the conditions for releasing the charge.
Is it safe to sign both purchase contracts on the same day? Yes, provided the purchase prices are held in escrow and the release conditions of the two escrow accounts are linked. Ownership only passes upon registration in the Land Registry (katastr nemovitostí), so the contracts and escrow arrangements must be drafted to allow for the length of the registration proceedings. Always have the specific contractual arrangements checked by a lawyer, and the tax implications of the sale by a tax adviser.
DALILE LIVING can help you prepare and sell your current flat, find your new home – including off-market opportunities – and coordinate both transactions. We handle the financing and legal aspects in cooperation with trusted specialists.
Sources
- ČNB doporučuje přísnější limity pro investiční hypotéky (tisková zpráva ČNB)
- Komerční banka – Metodika hypotečních úvěrů, produktová část (platná k 25. 8. 2026)
- Česká spořitelna – Co dělat, když se chci přestěhovat a peníze dostanu až po prodeji
- Hypoindex.cz – vývoj Swiss Life Hypoindexu
- Peníze.cz – Předčasné splacení hypotéky se prodraží, zpřísnění od září
- Měšec.cz – Při koupi na pronájem a od třetí nemovitosti jde o investiční hypotéku
- Vklad do katastru nemovitostí 2026: postup, lhůty a poplatky
