Although it is not mandatory to carry out the mortgage lift after making the last payment of the loan installment, you must take it into account. If in the future you intend to sell the home or request a new mortgage using the home as collateral, you have to cancel the mortgage by registry.
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What is the mortgage lift about?
The mortgage lifting is considered a registration procedure. Through this procedure, it is justified before a notary that the entire mortgage loan is duly paid. This procedure is registered in the Property Registry and eliminates, immediately, any possible claim regarding the mortgage by the bank. That is, the mortgage lift officially certifies that the mortgage has ended and is fully paid to the corresponding bank.
As we have commented previously, this procedure is not mandatory. It will depend on you whether you decide to carry out the mortgage lift or not. But, if your idea is to sell the house before 20 years of the mortgage payment, you may run into some problems.
The registration information of the mortgage of any property is excluded after 20 years from the payment of the loan. So if you decide to sell before that period, the home you want to sell will appear in the Property Registry with pending charges.
The same happens if you want to apply for a new mortgage and use this home as collateral. By not having made the cancellation of the mortgage, the house will continue with pending charges. All these problems could be solved with the completion of the mortgage lift on time.
Steps to cancel the mortgage
To cancel the mortgage, you must follow five steps in which they must participate: the Treasury, the financial institution, the notary's office and the Property Registry.
- First of all, you should ask your bank for a certificate of zero debt balances , either because you have paid the last installment of the mortgage or because of an early cancellation. This certificate affirms that the mortgage has been paid and must be free.
- This certificate must be delivered to the notary and request the cancellation deed in return . This deed will only be valid with the signature of a representative of the bank. This document should also be free.
- Then you must go to the farm to carry out the mortgage lift. Your task here will be to fill in the 600 Form of Tax on Documented Legal Acts. This process does not suppose any payment since the cancellation of the loan is exempt.
- You will have to go to the notary and take the deed paying its amount.
- Once all this documentation has been compiled, you must go to the Property Registry. In addition, you must fill out a document requesting the lifting of the mortgage burden. Finally, you will have to wait a few days, no more than 5 days, until you receive the notification from this body.
To see that everything has gone perfectly and that the mortgage is canceled, you will only have to request the simple note in the Property Registry and confirm that the house does not have charges, it is free of charges.
How much can the mortgage lift cost?
These are the costs that you will have to cancel a mortgage:
- Notary fees: These fees correspond to the cancellation certificate. The amount will depend on the notary, but by law it is set at a minimum of 90 euros. This cost can reach 250 euros, depending on the professional and the value of the mortgage loan.
- Professional Expenses: Paying off your mortgage on your own can be a tedious and complicated process. Many times you do not have the resources or time to do it and you always have the option of professionals in the financial sector. An agency can charge you for this service between 200 to 400 euros for carrying out the mortgage lift.
- Registration Expenses: Making any modification to the data of your home in the Property Registry will cost you about 25 euros. A fixed amount that is regulated by law.
If you need to know more about the mortgage lift or any other mortgage loan procedure, you can contact our mortgage experts and we will give you all the information you need to cancel a mortgage loan or apply for a mortgage.