Loans are only granted against a mortgage.
When new loans are issued, existing mortgages, in addition to the fund's loan, may not exceed 65% of the property's assessed market value, as determined by a certified real estate agent or other specialist designated by the fund.
In the case of mortgage transfer, existing mortgages, in addition to the fund's loan, may not exceed 65% of the property's assessed market value, as determined by a certified real estate agent or other specialist designated by the fund. The borrower pays the assessment cost.
The following documents must be submitted to the fund when a mortgage is to be transferred between properties
- New statement of mortgages on the property (veðbókarvottorð) stamped by the District Commissioner's Office (sýslumaður). Note that a summary of mortgages (veðbandayfirlit) is not equivalent.
- New statement of the balance payable on existing loans, or most recent receipts for payments.
- Copy of deeds with collateral in the property (tryggingarbréfum sem hvíla á eigninni).
- Copy of registered contract of sale (þinglýstur kaupsamningur), if the property has changed ownership in the past three years.
- Assessment from a certified real estate agent (löggiltur fasteignasali). (In consultation with the fund's staff)
- Certificate of building insurance, if the property is under construction.
- Permit for mortgage (veðleyfi) from the registered owners of the property.
- Signed declaration (yfirlýsing/ábending) of the person/persons granting the permit for mortgage. Forms for the permit for mortgage and the declaration are available from the fund's office.
A mortgage may be transferred between properties in two ways:
- The fund member carries out registration (þinglýsing) of the documents, and the transfer of the mortgage takes place in two stages. A declaration of the new mortgage is first registered (þinglýst) at the office of the District Commissioner (sýslumaður), then submitted to the fund, in return for a declaration that the prior mortgage has been lifted (veðbandslausn). This document must then be registered in the same way.
- The transfer of mortgage can be carried out by a single document, via the fund, in return for a messenger fee.
Cost of preparing documents for each loan: ISK 2,300
Registration of loan: ISK 2,000
New statement of mortgages on property: 1,500
Messenger fee: ISK 950
Payment for preparation of documents, postal costs and registration must be made before the documents are registered, at the fund's office on the 5th floor. Payments may also be credited to the fund's account at Íslandsbanki: 515-26-401144, kt. 430269-4459.