This issue we would like to inform you about the steps that need to be carried out to formally cancel a mortgage loan which has already been paid in full. Make sure the bank signs the title deed that cancels the mortgage in Spain. After the settlement of the debt with your bank, there is no reason to keep a charge over your property, which could somehow damage your interests in the future – such as in the event that you decide to sell the property. Note that the economic cancellation of the loan does not mean an automatic cancellation of the mortgage on your house in Spain, and therefore does not imply the removal of the mortgage at the Spanish Land Registry where your property is registered.
To cancel the mortgage at the Land Registry the following steps are required:
1. You will need to contact the bank providing the loan so that, through their agents, they attend a Notary Public in order to grant the Cancellation of Mortgage Deed.
2. Once the deed has been granted, you submit the same document to the corresponding Liquidation Tax Office, as exempt from payment of stamp duty, within 30 days of its issuance.
3. Following the liquidation, you present the deed to the corresponding Land Registry for the removal of the charge, so that the mortgage is cancelled. The aforementioned procedure does not correspond to the bank, but needs to be carried out by you in order to ensure your Spanish property is free of charges. The expenses arising in connection with the cancellation are also covered by you.
If you would like us to proceed with the necessary steps for the cancellation of your mortgage in Spain, please do not hesitate to contact us. We will contact your bank and prepare the granting of the Cancellation of Mortgage Deed, making sure that the mortgage is finally cancelled at the Land Registry where your property is registered.
Arcos & Lamers Asociados
Avda. Ricardo Soriano, Marbella
Tel. (+34) 952 775 010