mortgage

rossbenn

Could any of you smart mortgage brokers tell me why raising capital on an unemcumbered property with an LTV of 15% has to go through the legal process as in buying a new home. Also are there any complications like having to pay stamp duty or such like. Any light on the matter would be appreciated.

AndrewSmith

Basically because the 'ownership' of the property is changing.

In simple terms you are giving 15% ownership of the property to the mortgage company in return for the cash equivalent.

This change must be registered with land registry and a formal notification of a first charge lodged against the deeds to protect the interests of the lender.

There will be no stamp duty to pay on capital raising unless you are passing the property to another person.

payless

Its more of the corners that are cut on a remortgage, the new lender relies on ( with the backing of indemnity policy ) that the original lender conducted all the usual checks