What happens after mortgage completion?

onejontwo

We are in a very fortunate position that we may be able to pay off our mortgage soon. But what happens on completion regarding paperwork, deeds etc. Do the building society hand the deeds over after our last payment? Also I've heard to not pay it off fully as the Building society look after the deeds, whereas if it is paid off someone (ie. a bank) will have to look after them and charge a fee for doing so. We have had a mortgage for years but actually owning a property outright is new to us. Thanks in anticipation.

jhe

we were sent a letter asking if we wanted to leave £1 owing for them to store the deeds. or we could pay off completely and they would store the deeds for a set fee

onejontwo

If you don't mind me asking what was the fee? Also if you still owe £1, does that mean that technically they still own the property?

jhe

cant remember the fee to be honest. i suppose the bank still have an interest in the property if you owe even a £1. anyway we left the pound owing for a while, but they are now stored at the solicitors where my will is stored{free of charge} think when i paid the £1 our mortgage provider discharged the deeds as they were named on them along with me and the land registry notified. hope that makes sense how i explained it.

magpiecottage

onejontwo wrote: »

If you don't mind me asking what was the fee? Also if you still owe £1, does that mean that technically they still own the property?

Legally they never did own the property. You owned it subject to mortgage from day one. In England and Wales at least a mortgage lender never repossesses a house, they take possession.

Repossession applies to hire purchase arrangements.

They are not really interested in the property now but holding your deeds for them retains contact which might result in sales of other products to you. They will not worry about any work you do on it unless you hold the buildings insurance with them.

jhe

from what i can remember/understand they were named as having a charge on the property, the bank name was mentioned on the deeds if i remember correct, along with our names