Shared ownership mortgage
You have the option to use your share as security when you take out a loan. This applies both to loans for the purchase of the share and loan to pay for the replacement of the kitchen, buying a car or similar. Often the bank will actually require that the share is provided as security.
In practice, this means that your creditor has registered a mortgage on your share. The mortgage is recorded in the Register of Cooperative Housing.
It is not only your own loans which can be registered on your share and recorded in the Register of Cooperative Housing. If you are taken to a collection agency for an unpaid bill, your creditor can place an attachment on your unit. This will be also recorded in the Register of Cooperative Housing.
When a mortgage is to be registered in the Register of Cooperative Housing, we will be contacted by your creditor. This is because we as property manager must complete a 'title declaration' in which we attest that it is you who owns the share. You must pay a fee for this title declaration, even if you have not requested that the mortgage be registered, e.g. if is due to an unpaid bill.
Sale of the cooperative housing association unit
When you sell your cooperative housing unit, you must redeem all of the loans registered on your share – that is, all mortgages must be deleted before you can transfer your unit to the buyer.
In practice, we as managers will ensure that your creditors will be paid by the purchase price before any profits are released to you.
Sale in the case of over-mortgaging
If your share has been over-mortgaged, you must contact your creditors before you sell the share. Creditors' receivables will not be completely redeemed, and therefore they have no immediate obligation to cancel their mortgage in your share.
Therefore, you must ensure that mortgage-holders agree to cancel their mortgage in your share, even if the mortgage is not fully redeemed. You must send the written acceptance to us in relation to your sale.
On www.tinglysning.dk you can see who has a mortgage/attachment of your cooperative housing.