Partial mortgage release
You can apply for a partial mortgage release if you wish to divide the property for which you received a loan from HMS. Then part of the property is freed from the mortgage while you keep the loan.
Example
You want to sell a lot or land that is part of a property.
You want to sell the basement of your house.
Conditions
Mortgage space after the changes or reduction of the mortgage, must be sufficient for the remainder of the loan.
The total recalculated amount of the remainder of the loan must not exceed 80% of the property’s market value.
Application
Before you apply, you must make a new joint ownership agreement (eignaskiptayfirlýsing) and hand in at the office of the local building inspector. In addition you need to apply and pay for the registration of a new property number in the HMS property register, for the property that is created in this process.
Additional documents
The application must include:
A statement of the balance of other loans that precede the HMS loan on the property.
A copy of the lot’s founding document, description of the share of the property or its property number.
A HMS consultant will contact you by email and request more information if needed.
Application for a partial mortgage release approved
You will receive an email when the application for a partial mortgage release has been approved.
When the documents are ready they can be picked up during our opening hours at Borgartún 21 or they can be sent by registered mail if you live outside the greater Reykjavík area.
When the documents have been registered at the District Commissioner’s office (Sýslumaður) you return them to HMS.
You can sell the part of the property that was released from the mortgage.
Application for a partial mortgage release declined
You will receive a letter with the reasons for the rejection to My pages island.is
If you disagree with our decision, you can appeal your case to the Welfare Appeals Committee.
Service provider
Housing & Construction Authority