Mortgage-release fees
Mortgage-release fees are the notarial and registration costs borne by the borrower to formally discharge a mortgage or lender's special privilege (PPD) registered against a property once the loan is fully repaid. They differ from the original registration fees and arise at the end of the loan or upon early sale.
Key points
- Required whenever the borrower wants to sell or refinance before the registration expires naturally (2 years after loan maturity).
- Include notary fees, land-registration tax, and administrative disbursements.
- Ballpark: between 0.3% and 0.8% of the originally secured principal, depending on amount and timing.
- Not to be confused with early-repayment charges (IRA): both can apply simultaneously.
- On a property sale, the discharge is mandatory to clear title and release funds through the notary.
Frequently asked questions
Do you pay mortgage-release fees if you repay the loan normally at maturity?
No. If the loan runs to its natural maturity, the mortgage or PPD registration expires automatically two years after the loan end date, with no action or additional cost required. Release fees only apply if the borrower wants to sell or refinance before that window closes.
How should you anticipate these fees when planning an early property sale?
A thorough broker systematically includes release fees in the total early-exit cost calculation, alongside early-repayment charges. For a sale anticipated after 5 years on a €300,000 loan, release fees can be estimated at roughly €1,000 to €2,000 depending on the notary. This estimate sharpens the comparison between keeping the loan and refinancing.
What is the difference between discharging a mortgage and discharging a PPD?
A discharge applies to both security interests, but the fee calculation base may differ slightly. The PPD (lender's special privilege) benefits from a more favorable basis at registration, and its discharge follows the same rules as a mortgage. In practice, PPD release fees are very close to those of a conventional mortgage for the same principal.
In practice
A couple sells their apartment six years after buying it with a €220,000 mortgage, with 14 years of registration still to run. The notary handling the sale computes release fees of €1,450, deducted from the sale proceeds before the balance is remitted to the sellers. The broker had flagged this cost item during the original loan structuring.
Official sources
- Can a mortgage be lifted? · Service-Public.gouv.fr
- The annual percentage rate (APRC) · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr