It is important to define what a mortgage is from the outset, before tackling the concept of mortgage transfer. Defined as being the real right which a person has on the buildings registered for the performance of an obligation, the mortgage is materialized by an act carried out by the care of a notary, and is manifested by the taking of a registration on the property (s) concerned. Once completed, this notarial deed must be registered with the land registry services.
Mortgage transfer is a legal process that, in reality, leads to two outcomes . First, a new guarantee is created on a building to be encumbered , while secondly, a release of an initial mortgage , established upstream, is given. This means that the first guarantee still exists, and is just simultaneously replaced by a second.
More specifically, the mortgage transfer is often implemented at the time of the acquisition of a property thanks to the income from the sale of another property that we already have. It may happen that the sum is still not sufficient. It is in this case that the mortgage transfer intervenes, which makes it possible to consider reviewing the terms of the credit by going to his bank with a mortgage transfer offer. A new security is then created on the building that was considered to be encumbered, and a release is also concomitantly carried out on the security relating to the building to be released.
When transferring a mortgage , it is recommended that the parties link the two transactions, via two consecutive acts, or by means of a single act including both transactions. It is nonetheless important to highlight two essential nuances regarding the mortgage transfer mechanism:
- The new mortgage only exists if the release has actually been carried out on the previous one.
- The release of future security is only acquired if the new mortgage has been realized.
Carrying out the transfer mechanism via a single deed is more advisable , not only to benefit from the reduction in the costs of the notarial deed, which are in fact payable by the debtor, but also to increase the chances of the operation being carried out. in its entirety. Of course, the bank reserves the right to refuse this transfer offer and to demand the repayment of the initial credit with the sale of the first good.