Legal tip 1262. Is my property free after repaying full mortgage?
Tuesday, February 17, 2015 @ 3:13 PM
Once you have paid last installment of the mortgage debt, you have got two options:
- To do nothing: in that case, the registration information will remain there for twenty years, after which the registration should automatically delete it.The charge will be showed there before third parties which might be an inconvenient.
- To remove the mortgage record from Land Registry, so official records show a free of charges property before third parties. Steps to be taken are as follows:
- To request a certificate of zero balance from our financial institution. Bank is obliged to provide it free if we have satisfied all mortgage principal.
- To bring this certificate to a notary and request mortgage cancellation deed.
- To fill in the form of stamp duty tax (Form 600) in the corresponding tax office. The act is subject to tax, but exempt, so no tax cost.
- To obtain registration of this from Land Registry.
Again, lifting the charge of mortgage is not mandatory, but necessary if we want to sell or get a second mortgage on the same property.
"Cortijo del Palancar", near Ronda, Malaga, South eastern Spain, at facebook.com