Updated Friday, August 27, 2021 – 12:00
Having the home free of charges requires an additional action after finishing paying the mortgage loan. It is about the cancellation or lifting of the registry. This procedure can be done through the bank’s agency, either on its own or with an external agency. What makes up for more.
Bank management fees are usually higher.
When a mortgage has just been paid, additional steps must be taken to leave the home free of charges: the cancellation or lifting of the registry. And in most cases, the bank itself offers to carry out this procedure through its agency, which is the most comfortable option for the former loan holder. From the financial comparator HelpMyCash.com, however, they remember that hiring the bank’s agency is not mandatory and that, in addition, it is more expensive than to leave it in the hands of an independent agencyor do it on your own.
According to the data handled by this comparator, the fees of the agencies that work for the banks cost an average of between 300 and 400 euros. In addition, to pay that money and the rest of the expenses associated with the cancellation of the registry (the fees of the notary and the registrar), they often ask for a very generous provision of funds, which reaches an average of between 1,000 and 2,000 euros (if there is money left after paying these costs, it is returned to the former mortgaged).
On the other hand, if an independent agency is hired, the invoice for their fees may be significantly lower. For instance, HelpMyCash’s partner agency charges about 100 euros for carrying out the registration cancellation of a mortgage. It also adjusts the budget for notarial and registry fees so that the provision of funds does not skyrocket.
Thus, if an independent agency is hired, the savings can be between 200 and 300 euros on average. To calculate it, HelpMyCash has a free registration cancellation fee simulator, which allows you to see how much you would have to pay if the procedure were left in the hands of the bank and how much it would cost if your agency was commissioned.
There is also a way to save administrative expenses and pay only those of notary and registry: do the paperwork on your own. In these cases, yes, it is necessary to go to the notary, to the Treasury (to present the 600 model of the tax on documented legal acts, exempt from payment) and to the Property Registry, so It is only an advisable option if you have time to complete the process.
What if a mortgaged home is sold?
However, there is a situation in which it is more difficult to cancel the mortgage on your own or with an independent agency: If you want to sell a home on which a mortgage loan still weighs. In these cases, this credit is settled with the money from the sale and, later, the registration is processed to leave the property free of charges, something that must be done so that the buyer’s mortgage can be registered.
Logically, the buyer’s bank you want to make sure the paperwork is done so you can enroll your home loan smoothly, so usually requires the seller to hire his agency to carry out the registration cancellation. If this is denied, the entity will not want to go ahead with the operation, so the sale cannot be completed.
However, the fees of your agency can be avoided if youNegotiates to allow you to hire another agency or do the process on your own. In these situations, the ideal is to enter the required provision of funds and establish a minimum period of three months to carry out the registration cancellation by free or with the help of an independent agency. In this way, if the process is completed on time, the buyer’s bank will return the money from the provision and the seller will have been able to save a good sum in management costs.
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