When you have paid off your mortgage, the final step remains in the form of removing the encumbrance from the property.
One of the main inconveniences of buying a mortgage apartment is that such housing is encumbered.
The restriction is necessary so that the borrower cannot sell, donate or re-mortgage the apartment.
Often added to this is a ban on the long-term lease of real estate and third parties’ registration.
For the lender, this guarantees that the premises will not go anywhere until the borrower pays the mortgage loan for it in full.
When imposing an encumbrance, a mortgage is issued.
This is a document on the pledge of property, which contains the following: information about the borrower and about the lender, the data of the loan agreement, the amount of the mortgage debt, and the interest rate.
After paying off the mortgage loan, the borrower must remove the encumbrance from the property himself.
If there is no time or desire, you can turn to professionals for help, who, for a fee, will act as intermediaries in this matter.
Remember that the lenderis not interested in lifting restrictions on its own.
What to do?
– First of all, the borrower needs to get a lender statement (bank statement) or statement confirming the absence of loan debt.
It will take some time to prepare, usually about ten days. Therefore it is better to request a document at the time of the last payment – this will speed up the procedure. If the property was purchased as shared ownership (for example, by spouses), each owner must write a statement.
– Then, you should apply for a mortgage at the branch of the creditor bank. The bank puts a mark on the mortgage that the client has fully fulfilled his obligations under the loan. The bank’s seal and signatures of authorized persons confirm this fact. Just in case, you can add a loan agreement and documents for an apartment there.
– With this package of documents and a passport, the borrower needs to contact real estate authorities. There, all papers will be accepted from the citizen, and in return, they will be given an inventory of them. By the way, you do not need to pay the state fee for the repayment of the registration record on the mortgage. If there are several owners, you must either present powers of attorney from all apartment owners, or everyone must be present in person.
– The document verification procedure lasts no more than five working days. After this period, the encumbrance will be removed.
Written by Bader Albader, market researcher.