Once a ship or houseboat is entered in the shipping register (registered), it is a registry asset. Then a mortgage right can also be established on it. As long as a ship or houseboat is not registered property, only a lien can be established on it.
Because a bank in many cases likes a mortgage right on a registry property more than a lien, the interest payable will in many cases be lower if a mortgage right is established. Thus, the purchase of a houseboat or the finishing of a ship can be financed with a money loan. A mortgage can then be given as security for performance, with the ship or houseboat serving as collateral.
The mortgage right is established by notarial deed. A copy of this deed is registered in the land register.
When the loan is repaid, it is often assumed that this automatically cancels the mortgage. This is not the case. Like establishing a mortgage, establishing that the mortgage has lapsed also requires a notarial deed. It is therefore important to ask us to cancel the mortgage at the land registry after the redemption, so that everyone can see that the registered property is no longer encumbered.
For more information on mortgaging a ship or houseboat and cancelling it, please contact us. We will be happy to help.
pkooijman@kooijmanautar.nl
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