Mind and Mortgage Lifting: Is There a Difference?

Real estate mortgages can be withdrawn, a process known as “release” or “mortgage lifting.” these terms refer to ending the mortgage on a property.

Mortgage lifting becomes necessary in several situations:

• Loan Reimbursement: Once a loan is fully repaid, the mortgage is automatically lifted.
• Property Sale: If a property is sold before the loan is fully repaid, the mortgage must be removed for the buyer to take ownership without the encumbrance. A mortgage transfer might potentially be possible when buying another property.
• Credit Repurchase: Refinancing with a new lender requires lifting the old mortgage to establish a new one, if needed.

Automatic Release

A mortgage is automatically released, free of charge, one year after the loan’s full reimbursement. An early release,needed for selling or credit consolidation,requires a notary and incurs costs.

Mortgage Lifting in Credit Consolidation

Credit consolidation combines multiple loans into one, possibly reducing monthly payments and simplifying debt management. If a mortgage secures one of the loans,the question of lifting arises.

Necessity of a Release

Mortgage consolidation with a new bank requires a release to terminate the existing mortgage.

Lifting a mortgage restores the owner’s full rights to the property. It is indeed essential to:

• Allow property sales.
• Facilitate new mortgage loans.
• Authorize new mortgage registration on the property.

In credit repurchase involving a mortgage, the release is essential as the initial mortgage cannot be transferred to the new bank, and the new institution needs a clear situation to set up its warranty.

The Lifting process

A notary carries out the legal act of mortgage lifting, releasing the property from the guarantee. The main steps include:

1. Bank Agreement: Obtain authorization from the lending bank.
2. Notarial Deed: A notary establishes an authentic act of release, formalizing the agreement between the creditor and debtor.
3. Registration: The act is transmitted to the land advertising service.
4. Radiation: The land advertising service records the mortgage release, officially ending the guarantee.

Deadlines

The processing time for a release varies. The notarial deed takes about a week, and the land advertising service requires several days to record the release.

Points to Consider During mortgage Lifting

Several points require attention during credit repurchase involving mortgage lifting:

Financial Aspects

• Lifting Fees: These fees typically range from 0.3% to 0.8% of the initial loan amount, including notary fees, registration, property security contribution, and bank charges.
• Early Reimbursement Allowances: These may apply to the bought loans during a credit repurchase, adding to the overall costs.
• Overall Cost: While monthly payments may decrease, extending the loan duration can increase the total cost of credit.

Procedural Aspects

• Timing: The lifting must be carried out at the right time to avoid overlap between the old and new mortgages, requiring synchronization.
• Notary Intervention: A notary is required to write the authentic act.
• Time Limit: The release procedure can take time and should be considered in the overall schedule.

Legal Aspects

• New Warranty: the institution buying credits may request a new mortgage.
• Risk of Entry: Non-payment on the new loan can lead to property seizure if a new mortgage is implemented.

focus on Mortgage Lifting Fees

Lifting becomes automatic and free one year after the loan term. Early lifting, as in credit repurchase, is not free.

Components of Release Costs

Mortgage lifting fees include:

• Notary’s Emoluments: fixed remuneration for the notary’s work.
• Registration Fees: A fixed sum due to the public treasury.
• Real Estate Security Contribution: For canceling mortgage registration.
• Additional Costs: Various administrative procedures.
• VAT: Applied to the notary’s emoluments and formalities.

Cost Estimate

The total cost of mortgage lifting generally ranges between 0.3% and 0.8% of the initial loan amount.

negotiating the inclusion of release costs in the new loan may be possible during credit repurchase.