Combined mortgage is a method where a single mortgage is established on multiple properties owned by the debtor to provide security to the creditor. This approach is particularly preferred in high-value credit and financing transactions.
Features of Combined Mortgage
- Multiple properties are secured under a single mortgage.
- Each property is specified separately in the title deeds, but the mortgage process is carried out as a combined transaction.
- The creditor's rights are linked to all mortgaged properties and their total value.
How is a Combined Mortgage Established?
To set up a combined mortgage, an application is made to the land registry office, specifying the properties to be mortgaged and the mortgage amount. Mortgage records are made for each property in the title registry, but the transaction is completed under a single contract.
Advantages
- It provides higher security in large-scale credit transactions.
- For the debtor, the mortgage establishment process is faster and easier.
- It offers stronger protection to the creditor.
Legal Aspects
Combined mortgage is regulated under the Turkish Civil Code and relevant land registry legislation. If the debt is not repaid, the creditor may claim rights over all mortgaged properties.
Conclusion
Combined mortgage is used as an effective and secure collateral method in high-value financial transactions. It offers advantages for both the debtor and the creditor but requires detailed legal review.
