end of mortgage

M

macnas

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What is the proceedure when the term of a mortgage comes to an end? Are the deeds returned to the houseowner? Who has the title deeds? anything else that should be considered?
 
The lender will have their burden removed from the title deeds and the mortgage deed is vacated (closed).

Usually the title deeds will be returned to the owner.

Different lenders have different procedures and some may retain the deeds until they are requested by the owner.
 
There is/was a fee called a vacate fee that had to be paid to the bank to vacate the mortgage, (about 50 Euro I think) usually your solicitor arranges this and the deeds will be returned to his office unless you want to keep them yourself, which I wouldn't advice unless you have a fireproof safe. Lost title deeds can cost a lot of money and time to replace so keep them in a safe place.
 
Does the solicitor/bank charge an annual fee or anything for holding the deeds? If so, it may be an idea to freeze your mortgage when it hits, for example, 5000 euro. After TRS, your mortgage will then cost you 200 euro per year (if the rate is 5%)...
 
Do a search for previous threads here on AAM about what happens when you clear a mortgage and what your options are for removing the lender's name from the deeds and subsequent safe storage of these deeds.
 
ronaldo said:
Does the solicitor/bank charge an annual fee or anything for holding the deeds? If so, it may be an idea to freeze your mortgage when it hits, for example, 5000 euro. After TRS, your mortgage will then cost you 200 euro per year (if the rate is 5%)...
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You may still have to pay mortgage protection life assurance premiums.
 
Just make sure you get the correct deeds for your property - and just those deeds. When my mother cleared her mortgage, I went to the Registry of Deeds to collect the deeds to her property. I got those, alright ... along with somebody else's, folded up inside! Just as well I'm an honest ickle wytch or I would currently hold the deeds to a complete stranger's property :p
 
Celtwytch said:
Just make sure you get the correct deeds for your property - and just those deeds. When my mother cleared her mortgage, I went to the Registry of Deeds to collect the deeds to her property. I got those, alright ... along with somebody else's, folded up inside! Just as well I'm an honest ickle wytch or I would currently hold the deeds to a complete stranger's property :p
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Are you sure it was the Registry of Deeds because they don't store deeds.

The Bank should have the OP's deeds. The mortgage would have to be vacated by the bank and this would need to be lodged in the Land Registry or Registry of Deeds. If your title is with the Registry of Deeds it is better for you to keep the deeds in a safe place. Land Registry deeds you can keep them where you will remember because Certified Folios can be easily replaced and Land Certificates no longer issue.
 
ClubMan said:
You may still have to pay mortgage protection life assurance premiums.
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that's true but, even if that were the case, it'd still be worth considering the idea as you may have dependants for who's benefit you'd like to have life assurance anyway. In that case, you could, for example, get 100,000 life assurance and assign it to your mortgage. Then, if the worst should happen, your 5,000 mortgage will be paid off and the other 95,000 will go to your estate.
 
Celtwytch said:
They obviously did at that time, which was nearly 20 years ago. I went to their office on Henrietta Street.
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That doesn't make sense to me. If what you were doing was collecting the deeds having cleared the mortgage then you would have gone to the lender to get them. The lender holds onto them until the mortgage is cleared. Once you get them either they (for a fee) or you (for a smaller fee) can get the lender's interest in the property removed by taking the deeds to the Land Registry or Registry of Deeds (either or I think) to be updated. Perhaps what happened was that somebody did this and you went in to collect the updated deeds a while later? I did this once but they updated them there and then rather than taking them and having me call back.
 
ronaldo said:
that's true but, even if that were the case, it'd still be worth considering the idea as you may have dependants for who's benefit you'd like to have life assurance anyway.
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Not necessarily - decreasing term mortgage protection life assurance will reduce towards zero over time. In fact once the original mortgage term expires it might be worth nothing and the policy might lapse (and presumably no more premiums will be collected?!).
In that case, you could, for example, get 100,000 life assurance and assign it to your mortgage. Then, if the worst should happen, your 5,000 mortgage will be paid off and the other 95,000 will go to your estate.
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Only if it was level term. One would need to crunch all the numbers to ascertain whether or not it would be more cost effective to take this sort of approach to keeping a marginal mortgage amount outstanding versus storing the deeds elsewhere for a fee or for free. PTSB have stored mine for no charge for the past 8 years or so for example.
 
ClubMan said:
That doesn't make sense to me. If what you were doing was collecting the deeds having cleared the mortgage then you would have gone to the lender to get them. The lender holds onto them until the mortgage is cleared. Once you get them either they (for a fee) or you (for a smaller fee) can get the lender's interest in the property removed by taking the deeds to the Land Registry or Registry of Deeds (either or I think) to be updated. Perhaps what happened was that somebody did this and you went in to collect the updated deeds a while later? I did this once but they updated them there and then rather than taking them and having me call back.
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Maybe that is what happened - I can't remember. Either way, I ended up with the deeds to someone else's property. I just wanted to tell a story that seemed amusing - didn't mean to start this almighty debate about where I actually went to get the deeds!
 
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