French Mortgage

[Mrs B]

Hi,

Was having a discussion on French mortgages and the subject of paying off the mortgage was raised. One question was: what happens when the entirety of the French mortgage is repaid ie what should be done after eg

1. should any legal authority eg the notaire be informed?

2. is there a French equivalent of the English title-deeds

3. any other things that should be done

Can anyone enlighten please?

Thank you,

Mrs B

[nomoss]

[quote user="Mrs B"]Hi,

Was having a discussion on French mortgages and the subject of paying off the mortgage was raised. One question was: what happens when the entirety of the French mortgage is repaid ie what should be done after eg

1. should any legal authority eg the notaire be informed?

2. is there a French equivalent of the English title-deeds

3. any other things that should be done

Can anyone enlighten please?

Thank you,

Mrs B[/quote]

1) When a French mortgage is paid off the bank and and a Notaire (usually the one who wrote the Acte for the mortgage) together do the paperwork to lift the bank's lien on the property. The owner will then get documents showing the property is free of debt.

Both of them will charge handsomely for the process.

2) Ownership of a property is established by an Acte de Vente, a copy of which is held by the buyer.

3) Find out how much it is going to cost (a) To take out a French mortgage, (b) to pay off a French mortgage, before taking one out.

Then either save more money before buying or borrow from another source.

[idun]

Ok so there are costs involved....... but are there really cheaper mortgages than french fixed ones at the moment.

Surely it might be better to invest the money elsewhere at a later date and continue with a very low interest mortgage.

However, I do realise that the hypotheque comes off automatically a year after the fully reimbursement, if you want it done earlier one has to pay, the simulateur is on the service public web site, ie for initial pret of 100000€ it is 650€.

In fact there is lots of information on the service public web site.... as always[Www]

[NormanH]

When the loan has been paid off you will have to pay a fee to have what is called a mainlevée  this is a declaration by the lender that you don't owe anything.

It used to be automatic 2 years after the end of the loan but that has changed a bit

https://fr.wikipedia.org/wiki/Mainlev%C3%A9e

[idun]

I just looked on the service public web site and they say that the hypotheque comes off after a year without charge when the pret is finished....... the charge is, as you say, it is done mainlevee.

Or are we not talking about the same thing[8-)]

[NormanH]

Mainlevée d'une hypothèque

C'est l'acte par lequel le créancier (souvent la banque) atteste que le débiteur a complètement remboursé son prêt.

Auparavant, cette mainlevée était automatique deux ans après le terme

normal du prêt. Depuis la Réforme des Sûretés (ordonnance n° 2006-346

du 23/03/2006 publiée au JO du 24/03/2006), la durée extrême d'effet de

l'inscription (Hypothèque ou PPD) est ramenée à un an après le terme du

prêt (art. 2434 du code civil).

Avant ce terme, en cas de revente d'un bien immobilier, l'acquéreur demandera à ce que l'emprunteur procède à la mainlevée de l'hypothèque ou de l'IPPD car la banque peut faire vendre le bien en cas d'impayé même si le propriétaire a changé. Ainsi, par cet acte, le bénéficiaire de l'hypothèque accepte de ne plus en être bénéficiaire.

Cette mainlevée possède un caractère obligatoire et comporte un

montant élevé de frais. Certains organismes incluent dans le calcul

initial des frais d'hypothèque ou de l'IPPD, les frais de mainlevée.

Exemple :

Achat d'un bien immobilier sur 25 ans. En cas de revente au bout de

trois ans, des frais de mainlevée sont à payer (environ 0,7 % pour un

prêt de 145 000 EUR). Si le bien est conservé un an après l'échéance du

prêt, c'est-à-dire 26 ans, il n'y aura pas de frais de mainlevée.

This is what I was on about [:D]

[Chancer]

[quote user="NormanH"]

 car la banque peut faire vendre le bien en cas d'impayé même si le propriétaire a changé.

Cette mainlevée possède un caractère obligatoire et comporte un montant élevé de frais.

[/quote]

 

How delightfully French.

[idun]

I knew that we had to wait for two years for the hypotheque to finish when we had finished our loan, but the service public site says one year now. And I sort of trust them.

https://www.service-public.fr/particuliers/vosdroits/F788

[NormanH]

Which confirms what I said[:)]

It used to be automatic 2 years after the end of the loan but that has changed a bit

and I quoted the link which says it is now 1 year

[Mrs B]

Hi,

Thanks everyone for the great info and links. Unfortunately my French is not good enough for me to understand completely the French websites but it's fun trying :-) Apologies for this late response post but I have been laid low for a good few days with the 'lergy' and the forum was unobtainable the several times I tried in last few days but great to see it back with a great new look

Mrs B