A partial release is a condition that allows an individual to get full ownership of some of the property that is held in a real estate loan. Some lenders allow a partial release of collateral as the balance of the loan is paid down. This allows the buyer to secure part of the property before the loan term is completed. The process of being awarded a partial release usually involves several steps, including getting a survey done, filling out an application, and providing documentation of payments.
Many lenders offer a partial release to customers as a reward for completing certain loan conditions. When a partial release is granted, the owner of the property will receive a document that says a portion of the property is no longer being used as collateral for a loan. This gives the property owner full rights to the property.
For example, a property owner might have 100 acres (40.46 hectares) of property. After paying off 30% of her mortgage, the property owner goes to the lender to see if it will give her a partial release of a portion of the property. If the lender grants a partial release, then 30 acres (12.14 hectares) of the property are removed from the lien.
This strategy allows the borrower to collect some of the equity in the property that she has already paid. Some lenders will provide this option as an incentive for continually making payments. The lender looks at it as a way to cultivate good will with the borrower.
The process of getting a partial release is not always simple. In order to complete the process, an individual should talk to his or her borrower so that the proper steps are taken. Generally, the individual will need to get an application for a release from the lender. This application will need to be filled out by the applicant, and it will include basic information about the property.
In addition to filling out an application, the individual may have to have a professional survey done so that the land in question can be properly identified. The individual may also have to hire a real estate appraiser in order to determine the actual value of the property. The borrower will also have to provide documentation that proves all of the payments have been made over the course of the loan. At that point, the lender will make a decision as to whether the release will be granted.
