A partial release of a mortgage occurs when a lender allows the borrower to have part of the mortgage collateral released from a mortgage contract. For individuals to successfully release part of their mortgage collateral, they need to meet some requirements. For instance, you should ensure you have paid a specific percentage of your home mortgage before you even consider a partial release.
Before you apply for a partial release of mortgage, ensure you have secured the necessary documents. For instance, you must have proof of payment for your mortgage and all the details regarding the mortgage, including all collateral involved.
Seek consultation from experts. You may find it difficult to get a partial release of mortgage due to the growing number of applicants in today's economic climate. Seek counsel and advice from mortgage experts and lawyers to ensure a successful application. Remember that it’s best to have an open relationship with your lender.
Apply for a partial release of mortgage. It’s typically easier to apply for a partial release of mortgage if you are a homeowner rather than a commercial property owner. Your application should include the reason you're applying, signatures of all individuals who are signed on the Deed of Trust of Mortgage, a survey map clearly specifying the portion of the property to be released and the portion the lending company should retain, and an appraisal indicating the property’s current value that the lending company will retain. You will be required to pay an application fee.
Schedule an appointment with your lender. Remember to bring necessary documents and be prepared to answer the lender’s questions. You should also ask questions to clarify things you do not understand.
If you are approved for the partial mortgage release, you will receive notification within two to six weeks.