Release of a co-borrower (vyvázání spoludlužníka)
A change to the loan agreement by which the bank releases one of the joint debtors, leaving the remaining debtor to repay the debt alone. Co-borrowers are liable to the bank jointly and severally (§ 1872 of the Civil Code), so a release needs the bank's consent after a fresh creditworthiness assessment of the one who stays. It usually comes up on divorce or separation.
Example
Partners have a mortgage that was originally CZK 4,000,000; after five years about CZK 3,543,000 remains, and the departing partner wants out. The one staying has a net income of CZK 50,000, so the current payment of CZK 23,384 would be 47 % of income, above the usual internal threshold of 45 %. Stretching the term to 25 years brings the payment down to roughly CZK 20,700 (41 %), and the bank approves the release.
In practice
Only the bank can carry out a release, at the request of both debtors; neither a notary nor a court can do it. Ownership has to be sorted out at the same time, because transferring a share in the property is a separate entry in the land registry. A departing partner who hands over their share but stays on the loan remains liable for a debt on a flat they no longer own.
How it differs
In a release of collateral the bank frees the property from the lien, but the debtors stay. Debt assumption brings in someone new, whereas here one of the existing debtors simply leaves.
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