Just as you had to complete various procedures to obtain a mortgage loan, such as signing the sales contract before a notary or having the property appraised, there are procedures to lift the mortgage that involve new costs. At UCI we don't like the small print and that's why we're going to tell you all about it in detail, face to face. Keep reading to find out what they are!
What is mortgage relief?
Carrying out the mortgage lifting is nothing more than a procedure to inform and prove to the relevant Administrations and to society in general that the property is now yours and the loan has been paid in full.
Why should I carry out a mortgage survey?
It is true that lifting the mortgage is not a mandatory requirement and that it will entail a new cost for your pocket that varies depending on the amount of the initial loan. However, it is advisable to do so after paying off the loan.
The reason is that this process involves reporting to the Property Registry the extinction of the mortgage charges on the property after the mortgage has been paid. Thus, if in the future you want to sell the property or take out a second mortgage, for example, the registry information will reflect the real situation of the property.
Otherwise, official data will remain for 20 years linking the mortgage charges to the property, even if they have already been paid, making any real estate transaction difficult. After these two decades, the Registry will update the information, automatically removing the charges.
Time to Lift Mortgage: Where do I start?
Since it is not a mandatory procedure, you have two options to carry out the mortgage lifting:
? Mortgage lifting through the financial institution with which you had signed the mortgage. This is a simpler procedure, since the relevant bank or savings bank will take care of all the steps, upon request of the lifting by you.
? Lifting the mortgage on your own. In this case, you will be responsible for meeting all the requirements and submitting the appropriate documentation. Specifically, this is what you will have to do:
? Request a certificate of zero debt balance from the financial institution with which you had the mortgage. Although it should be free, the truth is that many banks can charge a commission for this procedure.
? Go to the notary with this document and ask for a cancellation deed to be drawn up, signed by you and the financial institution's representative. The cost will vary depending on the notary chosen and the amount of the mortgage.
? Complete and submit the Stamp Duty to the Tax Agency. Although it must be submitted, it will not entail any cost as it is exempt from payment.
? Go to the Property Registry with the deed and the receipt for the Stamp Duty and present the form for lifting the charge, which will cost from 25 euros onwards.
To check that everything is correct, it is best to request a simple note of the property to ensure that the home is, in fact, free of encumbrances.