All those with mortgages have one wish: to reach the last installment of the loan and get rid of that heavy slab that is the mortgage. However, property managers have a message for this group.
In general, Spaniards take around 25 years to pay off their debt with the bank. During that time they have been paying their dues punctually every month. The average amount is established at 141,798 euros, indicates the INE.
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But contrary to what many people think, the mortgage cannot be considered paid off after paying the last monthly payment. The debt with the financial institution comes to an end. However, the loan is still valid in the property registry, publishes The Spanish.
They explain that when a property is purchased and a mortgage is contracted, two deeds must be registered before a notary. On the one hand, the sale of the living place, and on the other that of the loan. Both are kept in the property registry until the property is sold or the loan is paid off.
It must be clarified that it is not mandatory to make this cancellation of the mortgage before the registry. However, it would be advisable because it will bring us more advantages than disadvantages. Among other things, we will thus achieve living place be free of that burden.
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This will also imply a significant benefit for the owner. When carrying out any financial procedure, it will be easier for you to be able to demonstrate greater financial solvency.
In addition, it can also be of great help for the future if you decide to put the property up for sale. It is possible that the buyer will demand proof that he is free of the mortgage and other charges. Failure to do so would harm the sale or even the precio of the operation.
Therefore, let no one relax once they manage to pay the last installment of the loan. We will still have to make one last economic effort to avoid problems later.
How much does the cancellation of the mortgage cost?
The cancellation of the mortgage can reach 1,000 euros, collects the financial portal HelpMyCash. It must be counted on that the notary will cost us around 450 euros. This professional will take care of preparing the deed of cancellation.
But it will not always be an exact amount, since it will be conditioned on the original amount of the loan. Therefore, the greater the amount granted in the credit, the greater the expense to be made. The minimum, by law, will reach 90 euros.
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As far as registration fees are concerned, the average is set at 250 euros. It is the part that we allocate to the registrar to eliminate the mortgage charge of the property. As in the previous point, a percentage is applied to the original amount of the loan.
The third point for which you will have to pay are the agency expenses. It ranges over 300 euros, although each agency will set its own rates. When it is done through the bank it will be more expensive.
The cancellation of the mortgage in the property registry is not a mandatory procedure. Nor will we expose ourselves to a sanction in case it is not carried out. But it would be convenient for us to do it if at any moment we want to sell it or demonstrate that it is free of charges.
There are several methods to do it. The most normal thing is to resort to the bank where the mortgage was contracted. This management will include the collection of some commissions and the expenses corresponding to the processing.
2023-08-20 08:44:39
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