Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • LucyH1986
    • By LucyH1986 21st Sep 16, 3:06 PM
    • 4Posts
    • 3Thanks
    LucyH1986
    Equity charges
    • #1
    • 21st Sep 16, 3:06 PM
    Equity charges 21st Sep 16 at 3:06 PM
    My partner and I are currently buying - offer accepted, mortgage approved, conveyancing searches all done, literally been waiting to exchange and complete.

    However, I am now being told that there we are waiting for equitable charges / redemption statements to be removed from the register.

    Does anyone know what this means and how long it takes?
Page 1
    • nomoneytoday
    • By nomoneytoday 21st Sep 16, 4:09 PM
    • 4,649 Posts
    • 2,796 Thanks
    nomoneytoday
    • #2
    • 21st Sep 16, 4:09 PM
    • #2
    • 21st Sep 16, 4:09 PM
    twice as long as doing half of them?
    • Thrugelmir
    • By Thrugelmir 21st Sep 16, 4:23 PM
    • 49,931 Posts
    • 41,611 Thanks
    Thrugelmir
    • #3
    • 21st Sep 16, 4:23 PM
    • #3
    • 21st Sep 16, 4:23 PM
    Your vendor owes someone money. This someone holds a charge over the property as security for the debt.

    Suggest you enquire through the EA as to how long this is going to take to resolve. May not be an issue at all.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • LucyH1986
    • By LucyH1986 22nd Sep 16, 11:11 AM
    • 4 Posts
    • 3 Thanks
    LucyH1986
    • #4
    • 22nd Sep 16, 11:11 AM
    • #4
    • 22nd Sep 16, 11:11 AM
    Thanks Thrugelmir, its currently with the solicitors and they seem to be dragging their heels.

    Could it stop the sale going through?
    • AnotherJoe
    • By AnotherJoe 22nd Sep 16, 11:13 AM
    • 3,496 Posts
    • 3,551 Thanks
    AnotherJoe
    • #5
    • 22nd Sep 16, 11:13 AM
    • #5
    • 22nd Sep 16, 11:13 AM
    Thanks Thrugelmir, its currently with the solicitors and they seem to be dragging their heels.

    Could it stop the sale going through?
    Originally posted by LucyH1986
    Of course. If it couldn't, there would be no point in having a charge over a property.
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 11:17 AM
    • 49,931 Posts
    • 41,611 Thanks
    Thrugelmir
    • #6
    • 22nd Sep 16, 11:17 AM
    • #6
    • 22nd Sep 16, 11:17 AM
    Thanks Thrugelmir, its currently with the solicitors and they seem to be dragging their heels.

    Could it stop the sale going through?
    Originally posted by LucyH1986
    Solicitors deal purely with the legalities. The money owed either has to come from the sale of the property or elsewhere. This is the vendors problem.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • Cakeguts
    • By Cakeguts 22nd Sep 16, 1:17 PM
    • 653 Posts
    • 811 Thanks
    Cakeguts
    • #7
    • 22nd Sep 16, 1:17 PM
    • #7
    • 22nd Sep 16, 1:17 PM
    This can take a long time to sort out. The solicitors have to assess whether settling the extra charge will leave the seller in negative equity if so then the sale may not proceed because there won't be enough money to pay off the mortgage. Last time we bought a house it took 5 months from offer accepted to completion. There was a mortgage and 2 other charges on the property. The property was vacant and we didn't need a mortgage. The hold up was because of the charges.
    • AnotherJoe
    • By AnotherJoe 22nd Sep 16, 1:18 PM
    • 3,496 Posts
    • 3,551 Thanks
    AnotherJoe
    • #8
    • 22nd Sep 16, 1:18 PM
    • #8
    • 22nd Sep 16, 1:18 PM
    Solicitors deal purely with the legalities. The money owed either has to come from the sale of the property or elsewhere. This is the vendors problem.
    Originally posted by Thrugelmir
    ..... which might become the OPs problem if it derails the sale.
    • G_M
    • By G_M 22nd Sep 16, 2:34 PM
    • 35,965 Posts
    • 39,301 Thanks
    G_M
    • #9
    • 22nd Sep 16, 2:34 PM
    • #9
    • 22nd Sep 16, 2:34 PM
    it is common for a property to have a Charge registered ie a mortgage.

    Normally, the seller's solicitor gives a "solicitor's undertaking" (promise) to the buyer's solicitor, that he will pay off the mortgage and get the Charge removed after Completion, using the money paid by the buyer.

    For some reason, this does not seem to be being done here. It may be because

    * the mortgage and /or debts are greater than the property sale price
    * here are multiple debts (Charges)
    * the Charge may not be related to a mortgage - it may be connected to a bankrupcy, court order, divorce or other matter

    Depending what the Charges are, and how many, it may take a few days to sort out, or several months.

    Or the sale may fall through.
    • LucyH1986
    • By LucyH1986 22nd Sep 16, 2:51 PM
    • 4 Posts
    • 3 Thanks
    LucyH1986
    Thanks for your responses all much appreciated.

    It has already been about two weeks so suspect the latter. I believe the vendors solicitor is waiting for redemption statements before he gives his undertaking.

    Surely the vendor would not put his house on the market and accept an offer if he is unable to use the sale money to pay off what he owes?
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 2:55 PM
    • 49,931 Posts
    • 41,611 Thanks
    Thrugelmir
    Surely the vendor would not put his house on the market and accept an offer if he is unable to use the sale money to pay off what he owes?
    Originally posted by LucyH1986
    Without knowing the full facts one can only speculate.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • davidmcn
    • By davidmcn 22nd Sep 16, 2:57 PM
    • 3,424 Posts
    • 2,961 Thanks
    davidmcn
    I believe the vendors solicitor is waiting for redemption statements before he gives his undertaking.
    Originally posted by LucyH1986
    In which case, that's perfectly normal practice and nothing which should give rise to concern. Some lenders are slower than others at providing statements.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

144Posts Today

1,397Users online

Martin's Twitter