2023-12-14 02:19:37
Finishing paying the mortgage represents one of the greatest reliefs for personal finances. Although it is not mandatory, it is advisable that, after paying the last installment, the loan with which the house was purchased is canceled at the Property Registry. According to data from the National Institute of Statistics (INE), in the last five years an average of 345,000 home mortgages have gone through this process. The figure rose to more than 298,000 between January and August 2023.
“Not everyone knows that, when the mortgage with the bank has been financially paid off, it continues to appear in the Registry,” says Elisabeth Durán Torrijos, from the Marín & Mateo Abogados firm. “And many others who do know do not cancel it from the registry because they want to save costs.” She refers to the notary’s fees and those of the agency. However, only a small amount of registration fee would be payable if the mortgage is canceled by prescription. “The regulations establish that, for this, 20 years plus one must pass from the expiration of the last installment of the loan,” she adds. That extra year is “to ensure that the mortgage has not been renewed, interrupted or foreclosed upon.”
Far from being a complicated process, requesting cancellation by prescription from the Registry where the mortgage is registered is easy. “If they have passed the time stipulated by law, no public deed will be needed,” explains Durán. “You will only have to complete a very simple application available electronically and go to the Property Registry with your DNI.” Registration cancellation is not a necessary procedure in many cases. “If you live in that house for your entire life, many don’t even consider it, but when you want to sell it or pass it on to your children, you have to do it.” The buyer who becomes the new owner or the heirs must ensure that the home is free of encumbrances and there is no room for any claim from the bank.
Partner at Marín y Mateo Abogados, Abel Marín Riaguas is the author of Protect your inheritance, a practical guide to avoid errors and solve the most common problems in inheritances and wills. Why is it so important to make a will? What happens if I die without a will? How is it done? All these doubts are clarified in a publication with direct and understandable language.
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