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Paying the last installment on your mortgage can be one of the happiest times of your life. Although it seems that it is something that will never arrive, it finally arrives and it is essential to know the steps that must be followed so that the house is free of charges. What is a mortgage cancellation and how should it be done?
The procedure that must be done so that the mortgage loan is canceled in the Property Registry is named mortgage cancellation. Nor is it a mandatory procedure, if not done, the mortgage will continue to appear registered in the Property Registry. Nevertheless, yes it will be mandatory if you want sell that property or request another loan. By not making this cancellation, the house will continue to have mortgage charges for 20 years, regardless of whether all fees are paid. After this period, the Registry will eliminate the charges automatically and without applying any cost.
Steps to follow to make the mortgage cancellation
The procedure can be done through the financial institution where you have signed the mortgage, although they will charge you management fees, or yourself. If you finally choose to do the procedures yourself, you have to ask for a series of documents: On the one hand andl certificate of zero debt balance, which must be requested at your bank and is the document that certifies that the mortgage is paid. They have no cost, but the entity can charge a commission if it performs all the cancellation procedures. And also ir to the notary to write the mortgage cancellation deed. This must be signed by a representative of the financial institution, and the bank cannot charge anything for the transfer of this to the notary. The cost of the deed varies depending on the amount of the mortgage, the minimum is 90 euros and the maximum will depend on the total of the mortgage.
You must not forget to fill in the model 600 of the Tax Agency. To carry out this step, you must go to the Tax Agency to settle the Tax on Documented Legal Acts. It is also important to rRegister the deed in the Property Registry: must Go with the deed and proof of the Documented Legal Acts Tax to do the lifting of the mortgage. The registration fees have a minimum amount of 24 euros, but they also depend on the amount of the mortgage. .
Once a few days have passed, it is recommended that you ask a simple note in the Land Registry to verify that, indeed, the property is free of charges.
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