Mortgage charge
A real-property security registered by notarial deed on the financed asset: on default, the bank can have it seized and sold to recover its money. It involves notary and land-registration costs, plus a paid release if the property is resold early. It is used mainly for new builds, land and certain structures.
Key points
- A real-property security registered by notarial deed on the financed asset.
- On default, the bank can have the property seized and sold.
- It involves notary and land-registration costs.
- A paid release is required if the property is resold early.
Frequently asked questions
What is the difference between a mortgage charge and a guarantee?
A mortgage charge encumbers the property via the notary, with registration fees and a release on resale. A guarantee involves a guarantor body for a contribution, often cheaper and partly refundable. Guarantees dominate on existing property, mortgage charges on new builds and land.
How much does a mortgage charge cost?
The cost adds the notary's fees, land-registration tax and disbursements, roughly 1.5 to 2% of the secured amount. On top, if the property is resold before the loan ends, comes the cost of a release. It is a line to include from the financing plan.
What happens to the mortgage charge at the end of the loan?
It lapses automatically one year after the final installment, with no step or fee. Only in case of resale or early repayment does a paid notarial release become necessary to lift it before that point.
In practice
For a fully financed new-build purchase, the bank often prefers a mortgage charge (or lender's lien); reselling after 6 years will require a release of a few hundred euros to anticipate.
Official sources
- Do you need a mortgage to obtain a home loan? · Service-Public.gouv.fr
- The mortgage once the loan is repaid · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr