The mortgage for Luxury Condo in Singapore is generated by deed in the countries of civil law. The Anglo-American law does not require legal intervention, but the mortgage must be registered in the land registry or to be enforceable against third parties.
The basis of the mortgage is usually a building or more accurately the ownership of a building. There may be different mortgaged property rights available such as ownership, usufruct or bare ownership.
The mortgage is the subject of a land registration tax ( 0.615 % of the loan amount 0.715 % from 1 January 2006). Mortgage costs represent about 2% of the loan amount. The mortgage must be a deed and the registration is done in an area where the property is located. The rank of the mortgage, which determines its priority over any other security, takes effect on the date of registration.
In case of default of the secured debt, the mortgage is made: the property is subject to foreclosure resulting in an auction by a competent court. Generally, if you sell the property before the expiration of the effective date of the mortgage, the creditor accepts radiation (called release) the registration of a mortgage in exchange for the repayment of the debt by deducting the selling price.
This radiation is with the registrar of mortgages by the same authorized intermediaries for registration. Costs and fees of this deed of release shall be borne by the borrower or seller of the property. It is better to negotiate beforehand with the creditor if it is not restricted by a Luxury Condo in Singapore tariff.
Reloading is for the borrower to re-mortgage on the support of a first loan, usually real estate, to secure new debt. The amount already paid can generate a new security, and facilitates new debt. This is a practice used in the real estate investment.
The reverse mortgage
The reverse mortgage taken out with a bank may be paid as a lump sum or annuity, secured by a mortgage on a property for residential use (primary, secondary or rental). The borrower is required to make any repayment of the principal and interest.
Speaking almost exclusively to the elderly, this type of loan provides liquidity of its assets without being separated. This loan can be useful to supplement retirement income and / or when you face unexpected expenses (dependency, housing repair, etc).
Upon death, the heirs may choose to redeem the loan if they want to keep the property, but whatever happens, the debt claimed by the bank may not exceed the resale value of the property as estimated at the date of death ( debt ceiling ), which protects the heirs.