The remortgaging (“l’hypothèque rechargeable”) is defined by the article 2422 of the French Civil Code (Ordonnance n° 2006-346, March 23rd of 2006). This legal measure is mandatory.
Definition: The remortgaging is the process of using an existing conventional mortgage (“l’hypothèque conventionnelle”) previously included in the land registry to guarantee a new debt which is not included in the original agreement.
It has to be concluded before a notary and will be published as a remortgaging convention (“convention de rechargement”) with the former conventional mortgage agreement in the land registry (“la conservation des hypothèques”). The publication as marginal notes is made in the land registry where the building is situated. Remortgaging is allowed if there is an existing mortgage agreement, which expressly contains a remortgaging clause. It is also allowed, regarding mortgages contracted before the issue of the Law in 2006, to write an endorsement (“avenant”) afterwards which will have to be published in order to be valid.
The financial law of 2007 has planned an exemption for the property tax and for the registration fees when you change your conventional mortgage into a remortgaging (Loi de finances n° 2006-1666, December 21st of 2006). In order to benefit this exemption the endorsement has to be concluded by a private person and the mortgage must guarantee an obligation contracted by this person.
Summary :
THE ASSIGNMENT OF DEBTS (“DÉLÉGATION DE CRÉANCE”)
1/ REGARDING THE NEW LOAN
2/ REGARDING THE FUTURE LOAN OFFERS
fichier à telecharger:
100107 – THE REMORTGAGING
