I have never signed my mortgage agreement, is it enforcable

michellekillen

This is the first time I have used this site but I am desperate for some advice so here goes!

I bought my house from a family member in August 2008 and i was already living in the house before i sorted out the mortgage.

I arranged a mortgage offer and the mortgage started to be taken out of my bank in September 2008.

The problem is I have never signed the morgage agrement or loan agreement for the mortgage, even though the funds have been transfered from the solicitor to the person i bought the house from.

I wrote the the lender to ask for a copy of the loan agreement to double check, and they have sent me a letter with a copy of the mortgage agreement telling me to sign it or they will take further action?

I have spoken to a solicitor who says the loan is illegal and can be squashed and my house will belong to me, this solicitor however want £5000 deposit and 10% of the loan when it is squashed, this comes to just over £40,000.

is this solicitor right? or is he just taking a chance? does any one have any good advice for me on the legal side?

Many Thanks in advance

SandC

Did the family member receive the money? Either they still own the house or the building society does. I am no expert but you don't just win a house if the mortgage isn't quite right! It sounds a bit dodgy to me.

You would be best off to get a second opinion from another solictor.

Conrad

You normaly sign a separate document called a mortgage deed. Not all lenders as far as I know need you to also sign a mortgage offer acceptance form.

There is no way I would part with any money, let alone £5000!

If the Solicitors thinks it's watertight, then he will surely be happy to be paid on completion. There are no win no fees lawyers out there - just put up a thread asking for contact details for such firms.

bigheadxx

The fact that you have made mortgage payments is an acceptance for liability for the debt.

Title deeds are no longer required to assert ownership of a property.

Mrs_Bumble

I agree with Conrad, not all lenders require the mortgage offer to be signed, after all you made the application and this has been signed and then as Conrad say you sign the mortgage deed with the solicitor and the money is accepted and transferred to the vendor.

Nice way to make £5000!

Go back to the conveyancer who did the legal work for your mortgage lender, see what they say.

zzzLazyDaisy

In any event, you will have given a charge over your house, which will be registered on the title deeds at the land registry.

This is proof that you accept the debt, and also enables the lender to seek repossession if you fail to pay the mortgage.

As Mrs Bumble says, go back and see the solicitor who dealt with the conveyancing for you. S/he will explain things to you.

dunstonh

I have spoken to a solicitor who says the loan is illegal and can be squashed and my house will belong to me, this solicitor however want £5000 deposit and 10% of the loan when it is squashed, this comes to just over £40,000.

Is this a real solicitor or a sales rep from a claims company?

hostman

I've applied and accepted two mortgage offers in the last 12 months, neither of the "offers" needed signing, all the signing was done during application and through the solicitor in terms of deeds etc. If I didn't want to use the mortgage offer I would have needed to tell my conveyancer.

But it could vary between lenders.

michellekillen

Thanks for all of your comments, the person who i bought the house from has been paid, the title deeds are in my name, and from what I can see there is no charge on the property.

If they dont need my signature to enforce the loan why did they start asking for it when I asked for a copy of the loan agreement?

I have also checked with soliciotrs and they have no copy of the mortgage agrement being signed, apparently they are supposed to ensure this is signed before they release the funds, does any one know if this is correct??

michellekillen

dunstonh wrote: »

Is this a real solicitor or a sales rep from a claims company?

it's a real solicitor, im just wary of the amount of money it will cost.

opinions4u

Ask the solicitor to take the case on a no win no fee basis.

If they're so sure you'll win, why wouldn't they?