As a security for a mortgage, banks often require an entry in the land charge in the land register of the funded property. In the case of an eventual insolvency of the borrower, the Bank with the registration of the mortgage, namely, access to the house or apartment, and Not a forced sale of the property. This remains a debt in the land register continues to be listed, even if the loan to the creditor, or, in the case of the Bank was already fully paid for. The deletion of the land charge from the land register must be active at the competent land registry applied for.
How can the basic debt-to-delete?Only if the original loan taken by the borrowers fully repaid, and repaid, may be addressed to the deletion of the basic debt.The Bank that issued the mortgage, to certify with a so-called deletion approval, the freedom from debt of the borrower.With the deletion approval, the owner goes to the notary.The notary public on the approval of the Bank, a request for cancellation of the mortgage at the land registry and the relevant registry office.
This is clear: the deletion of The land charge can not be in vain – for a cost for the notary, also the land registry allows for the deletion of pay. The Person
Sebastian Wagner is the founder and managing Director of house of gold, a company for real estate valuation and brokerage placement. He has more than ten years of experience as an Online Entrepreneur and managing Director in the Online industry
What is the cost of the deletion of the reason to blame?
are involved in the process of the basic debt cancellation of the notary and the land registry, is the cancellation fee and is also composed of these two components. A notary may issue an invoice in the amount of 0.2 percent of the basic debt. For the administrative expenses of the Department of records expenses in the amount of 0.2 percent of the land to fall as debt.
example: Is the reason to blame, or the recorded loan amount of 400,000 euros, an amount for the cancellation of 1,600 euros (800 euros in notary costs + 800 Euro costs for the land registry.)
when is a deletion of the basic debt makes sense?
Due to the costs incurred in the event of a cancellation of the mortgage, should consider the owner, whether the step is worth your while really. This decision is very individual and depends on many factors.
Want to sell the owner of your property or your property, it may be advantageous to allow the deletion of the basic debt, because many buyers require a ballast.In addition, the deletion involves the reason to blame a certain degree of security, because there is no debt, it can not be sold by the lending Bank to another Institution.Also feel it to some owners as a considerable relief to have the debt from the land register to delete, in order to be considered as credit. Display
when is the deletion of the basic debt makes sense?Owner, for the sale of your property is not in the immediate time in question, the entry of the basic debt, although the loan has already been repaid completely. The desire of a renovation or extension to, is it possible to use the existing mortgage as security for another loan.In addition to Working on the house and base with the remaining base can be used to purchase debt a car or the comparable acquisitions funded. The further use of the fundamental causes of debt, no additional cost, as long as there is no need to increase the original debt.Although many merchants want to acquire prospective customers prefer an object without the basic fault, is it common practice to sell a property or a plot of land with the primary entry. The deletion of the land charge is then regulated with the help of a notary clearly in the purchase agreement.In the FOCUS Online/Wochit 960 percent property tax-assessment rate: The are Germany’s greediest tax-municipalities Bank charges mortgage property buyer a credit for deletion of North Rhine-Westphalia consumer advice centre