Document background
The Mortgage Release Letter is a crucial document in Nigerian property transactions that formally terminates a mortgage agreement between a lender and borrower. It is issued when a borrower has fully satisfied their mortgage obligations, including complete repayment of the loan amount and any associated charges. The letter serves multiple purposes: it confirms the discharge of the mortgage, authorizes the removal of the lender's interest from property records, and provides evidence that the property is no longer encumbered. Subject to Nigerian property and banking laws, particularly the Land Use Act and Central Bank regulations, this document is essential for updating land registry records and confirming the borrower's unencumbered ownership of the property. The Mortgage Release Letter must contain specific details about the property, the original mortgage, and clear statements about the discharge of obligations to be legally effective.
