the principle of release

  • Sometimes, in order for a bank to agree to grant a loan to a borrower and to disburse the funds, it may request that guarantees be presented, among them the mortgage. In principle, the registration of a mortgage allows the lender to seize the property in the event of several outstanding payments and resell it to recover the money invested. In certain specific situations, you may be required to withdraw this obligation. Our experts will explain to you the operation and method of calculating a mortgage waiver.

What is a mortgage deed?

As part of a home loanof a repurchase of mortgage or even a mortgage credit, the taking of guarantees by the bank often takes the form of a mortgage or even a mutual surety or a pledge. In order to minimize the risk taken by the lender and avoid repayment default, the mortgage is the last resort when the borrower is experiencing financial difficulties to the point of no longer being able to honor his credit maturities. In this case, this registration will include the right for the financial institution to seize the property and resell it at auction with the aim of recovering the funds granted.

However, the mortgage registration may have to be lifted in a situation occurring before the term of the loan contract. Indeed, on the resale of the property, on the early repayment of the loan or even of a repurchase of credit. The intervention of a notary will be necessary to officially withdraw the guarantee on the property concerned, in this case we will proceed to a deed of release.

It is advisable to obtain the agreement of the beneficiary creditor of the mortgage beforehand, but rare are the establishments which are opposed to this type of approach. Indeed, whether following the resale of the property or a repurchase of mortgage, in all cases, the initial bank recovers the funds lent and therefore has very little interest to prevent the lifting of a mortgage. .

Our expert advice:

A mortgage waiver is not necessary in the event of full repayment, it is automatic one year after the last monthly payment.

How are the costs of a release calculated?

As explained above, the deed of release of hands can only be drafted by a notary, this also means that this process generates a certain cost to be taken into account.

The costs of a raised hand consist of:

  • registration fees at the Public Treasury of around 25 euros;
  • the contribution of my real estate security;
  • disbursements of the notary;
  • 20% VAT for notary fees;
  • notary fees.

By adding up all these sums due, the estimate of the costs for a raised hand is equivalent to between 0.3 and 0.5% of the amount of the mortgaged property.

Who pays the costs of a show of hands?

Naturally, before initiating a raising of hands on the mortgaged property, it is necessary to check who will be liable for the costs inherent in this procedure. According to this principle, it is up to the borrower to pay all the costs relating to the act of raising hands.

Indeed, given that this procedure is brought only on his initiative, it is therefore up to him to bear the financial cost to withdraw the registration of the mortgage.

When to release a mortgage?

To put it simply, an act of raising of hands often occurs when the repayment of a loan secured by a mortgaged property occurs before the term agreed in the loan contract.

So when reselling the property, the borrower will have to initiate this procedure to withdraw the mortgage registration on his home to part with it. As long as the mortgage is valid, it is then impossible for the owner to transfer his title to someone else.

Therefore, if you move or wish to sell a mortgaged property, you will have to go upstream through a notary to have a deed drawn up, which will remove the mortgage guarantee.

In addition, if you embark on the consolidation of your credits, including a loan that has a mortgage guarantee, you will also have to carry out an act of raising your hands so that you can benefit from new repayment conditions such as lowering your monthly payments or even get cash integrated into your operation.

Finally, if you want to prepay a mortgage or mortgage loan, for example, you will need a show of hands to fully free yourself from registering your home for the mortgage.

Our expert advice:

If you do not wish to pay the costs linked to a raised hand, you just have to wait for the end of the reimbursement of your credit concerned by this guarantee. Indeed, in this situation you will not have to do anything because the lifting of the mortgage is automatic 1 year after the end of the contract.

Trust Solutis to finance your personal projects

Do you have several projects in mind that just lack the funds to take action? You can call on Solutis, as a broker we are responsible for finding the financing corresponding to the expectations of our customers and negotiating their conditions, such as the best rate with our banking partners.

At your side, we take care of all the administrative procedures to be carried out, allowing you to offload this responsibility to a trusted professional, who has been working in the brokerage field for more than 25 years. Our experts can help you carry out several simulations until you obtain a result that meets your requirements. In addition, you can also commission us to negotiate loan insurance on your behalf at a reduced rate, without degrading your protection and the guarantees taken into account.

To contact a Solutis adviser, simply fill out a form with your personal information and to propose a slot in order to be called back as soon as possible.

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2023-06-07 20:04:03

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