Release of collateral (vyvázání zástavy)
Freeing a property from the bank's lien before the mortgage is fully repaid. The bank has to consent, either because the debt has fallen and the remaining collateral is enough, or because the property is being sold and part of the price goes to repay the loan. On the strength of that consent, the lien is deleted from the land registry (katastr nemovitostí).
Example
Five years ago a mortgage of CZK 4,500,000 (5.00 %, 25 years) was secured by a flat worth CZK 5,000,000 and by the parents' house. Today the debt is about CZK 3,986,000 and a new valuation puts the flat at CZK 5,500,000, so the LTV on the flat alone is 72 %. The bank can release the parents' house and issue its consent to deletion.
In practice
Apply to the bank in writing. It usually wants a current valuation of the remaining collateral and may charge a fee under its rate sheet. In a sale, the release runs through a lawyer's escrow (advokátní úschova): the purchase price first repays the bank, which then issues consent to deletion. Don't expect the bank to release anything automatically once a certain LTV is reached; someone has to ask.
How it differs
Deletion of the lien is the entry in the land registry itself, and the release is the agreement with the bank that comes before it. A discharge receipt (kvitance) confirms that the debt is fully repaid, while a release can happen with the loan still running. Both end with an entry in the land registry.
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