Release of charge
The act of lifting a mortgage or lien before it lapses automatically, for example when a property is resold before the loan ends. It requires a notary and incurs fees. Anticipating this cost is essential when a mortgaged property is sold quickly.
Key points
- Notarized deed lifting a mortgage or lien before its contractual end date.
- Mandatory when the property is sold before the loan is fully repaid.
- Generates costs (fees, taxes) that must be factored into the sale's total cost.
- Without a release, the mortgage registration remains for one to two years post-repayment.
Frequently asked questions
Why is a release of charge necessary when reselling a property?
When reselling, the buyer or their notary requires the property to be transferred free of all charges: a residual mortgage would make the title unsaleable. The notary handling the sale processes the release simultaneously with the early loan repayment, deducting the funds from the sale price. Without this step, the transaction cannot be finalized.
How much does a mortgage release cost?
The cost depends on the outstanding balance at the time of release and includes notary fees, land-registry tax, and various administrative charges. In practice, it often represents between 0.3% and 0.8% of the original loan amount, which can amount to several thousand euros. It is a cost often overlooked when calculating the profitability of an early sale.
What is the difference between a release of charge and the natural expiry of a mortgage?
A mortgage expires automatically one year after the final loan installment, free of charge, simply by operation of time. A release of charge, by contrast, is a voluntary early cancellation, at a cost, made necessary when one cannot wait for natural expiry, particularly when reselling. If the sale occurs after expiry, no release is required.
In practice
A borrower resells their flat six years after purchase with €150,000 still outstanding. Their notary processes the mortgage release simultaneously with the early repayment, at an estimated cost of around €900, deducted directly from the sale price.
Official sources
- The mortgage once the loan is repaid (release) · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr
- Housing and financing information · ANIL