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who pays the mrtgage off when selling?

We are thinking of trying to sell our bungalow, we have a part mortgage / part housing association loan on the property. What happens once we agree a sale? Does the solicitor pay off the mortgage and the housing association loan before we get (hopefully) the remainder of the money? We have never sold up before so I dont exactly know what happens. Someone suggested the solicitor paid the mortgage but we would have to sort out with the housing association the amount repayable? Has anyone any idea please?

Comments

  • Yorkie1234
    Yorkie1234 Posts: 57 Forumite
    When I sold mine about 2 months ago the solicitor got in touch with the mortgage lender to get the amount needed to repay the mortgage and that was taken out of the money before the remainder was sent to me.
  • terryw
    terryw Posts: 4,396 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Your solicitor will have to repay both loans (assuming that they are charges on the property). The solicitor for the buyer will require proof that they have both been paid or a solicitor's undertaking that they will be paid before handing the money for the sale.
    "If you can bear to hear the truth you've spoken
    Twisted by knaves to make a trap for fools"
    Extract from "If" by Rudyard Kipling
  • doinright
    doinright Posts: 9 Forumite
    thank you both, that makes it easier and a lot clearer now,
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