Can you get a mortgage on land

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Mortgage and land charge are rights to a property that are usually appointed for third parties (mostly credit institutions) and entitle them to obtain satisfaction from the property by means of a foreclosure sale or administration (mortgage liens) under previously defined conditions (security case).

They mainly serve to secure loans:

  • The mortgage secures a specifically defined claim and its existence depends on this.
  • The land charge is not tied to a specific claim and its existence is therefore not dependent on a claim. It can be used as security as often as you want, including for new loans. A security agreement ("security purpose declaration") concluded between you as the borrower and the bank granting the loan regulates which claims are secured by the land charge.

The mortgage is the most frequently ordered mortgage; Because of its independence from a specific claim and the flexibility that goes with it, it has largely ousted the mortgage in practice.

Mortgage liens can also be established as mortgage liens. In the case of a mortgage, this facilitates the assignment of the claim secured by a mortgage and, in the case of the land charge, the transfer of the land charge itself, since these do not have to be entered in the land register to be effective.

Note: Numerous individual cases are conceivable. Therefore, individual advice from the notary is essential.