She is part of the real collateral. It is used to guarantee the payment of a debt, generally a mortgage. It thus gives the creditor a priority which allows him to sell the property on which it relates if the borrower comes to no longer repay his maturities. It is the subject of an authentic act and starts on the day of its registration with the land formalities service (ex mortgage conservation office). Note that it is possible to avoid the mortgage by offering the guarantee of a mutual guarantee.
It relates to new or old property, unlike the lender of money privilege which can only relate to existing property. It is thus possible to register a mortgage on an asset to come.
The basis of calculation is the right on the building which is put in guarantee and not the real estate itself.
In the event of a financial problem, the guarantee will allow the creditor, that is to say the lender, to seize the property by legal means in order to be sold at public auction. In the event of default by the debtor of the guaranteed debt, the mortgage is realized : the right is seized and then sold by legal means. The cleared track clause which would allow procedures to be bypassed is prohibited.
The cost is around 2% of the capital borrowed. She understands :
- The land advertising tax (0.615% of the loan amount)
- The salary of the mortgage curator
- The notary’s fees
- Value Added Tax (VAT)
- Elements for comparing the mortgage and the mutual guarantee
In case of early repayment of the loan, it will be necessary to release the registration of the Mortgage . This procedure generates costs, because it is a legal act. By raising it, the bank certifies that the borrower has repaid the loan.
Note: this release is automatic two years after the scheduled term of the loan.
Let us take an example on the basis of a loan in the amount of $ 200,000 over 20 years at a rate of 2.60%, used to finance the acquisition of old housing in mainland France.
- The cost of the warranty will be $ 3,050.
- The release costs will amount to $ 1300 (in case of early resale of the property).
The deposit: an economical alternative
Other guarantees can be chosen by the borrower. It is even more and more common for banks to choose to go through guarantee organizations such as mortgage loans.
These specialized companies are today a real alternative to mortgages .
Another collateral used, the lender lien, is also a security interest which is quite similar, but which cannot be used for the purchase of new property.
The rechargeable mortgage
The principle of the reloadable mortgage consists in putting as collateral for a loan (real estate, works, consumption …) a property already mortgaged for a first loan. In order for it to be recharged, you must sign an agreement during the initial Authentic Act or ask your notary to draw up an endorsement.
Finally, know that it works for all types of credit, it can in no case be used as a guarantee for a bank overdraft.
Comparison with a personal loan
When the amount and purpose of the loan makes it possible to contract a personal loan, it will be necessary to verify the interest to go through a more restrictive rechargeable mortgage. Articles that might interest you
- The privilege lender of money
- Obtain a statement of mortgages registered with the land registry service